Article

Government clarifies unused pension funds will fall within general component for charitable testators

13 May 2026 | Applicable law: England and Wales | 1 minute read

Get in touch

Government clarifies unused pension funds will fall within general component for charitable testators

The government has confirmed via a parliamentary question that, from 6 April 2027, unused pension funds and notional death benefits will fall within the general component of a deceased's estate for the purposes of calculating whether they have left more than 10% of their net estate to charity.

This provides clarification on the way in which the recent Finance Act 2026 changes to the inheritance tax treatment of unused pension funds and lump sum benefits will interact with the existing inheritance tax reduced rate of 36% for charitable testators.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.

Share

Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Charities and non-profit Arrow right

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.
Sign up here