Labor & Taxes
The countdown to April 2027: UK pensions, inheritance tax and opportunities for expatriates
From April 6, 2027, unused pension funds and death benefits will be included in the scope of UK Inheritance Tax (IHT). While expatriates who have been outside the UK for 10 of the previous 20 years may see their overseas assets fall outside the UK IHT net, UK-situated assets, including pension funds, remain subject to UK taxation if they exceed relevant thresholds.
Why it mattersIf you are a British expatriate in Portugal, you may face a significant increase in your UK inheritance tax liability from April 2027 because your UK-based pension will be included in your taxable estate regardless of how long you have lived abroad.
Portugal Resident
