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Pension Changes Could Create New Challenges for Farming Families

Amy Woolliscroft20th August 2026
Retirement Planning

From April 2027, significant changes to the inheritance tax (IHT) rules are expected to bring most unused pension funds within the scope of an estate for IHT purposes. While much of the discussion has focused on the potential tax implications, there is another practical issue that farming families and rural business owners should not overlook – the additional burden this could place on personal representatives and executors.

When someone dies, their personal representatives will be responsible for identifying all assets and liabilities before the estate can be administered.

If unused pension funds are included in the estate for IHT, executors will also need to establish exactly what pension arrangements existed, who the providers are, and the value of any remaining funds. This information will need to be gathered within HMRC’s required timescales, normally by six months after the end of the month of death, so that the correct inheritance tax position can be established and paid.

Any delays in identifying pension assets could hold up the administration of the estate and, where tax is paid late, HMRC may begin charging interest on the outstanding amount.

For many people this may be relatively straightforward. However, for those who have built up several pensions over a lifetime – perhaps through different employments or self-employment – tracing every scheme could become a time-consuming exercise.

Delays in locating pension information may make it much harder for executors to meet reporting deadlines and deal with the estate efficiently.

This is particularly relevant for farming families, where wealth is often tied up in a combination of land, property, business assets, and pensions. Some self-invested pension arrangements, such as SIPPs and SSASs, may even hold commercial property or land.

There are some sensible steps that can be taken now to make life much easier for those left behind.

  • Keep an up-to-date record of every pension you hold, including the provider’s name, policy, or plan number, and contact details. Store this information securely and ensure your family or executors know where to find it when the time comes.
  • If your pension includes more complex assets, such as farmland, commercial property or other investments held within a SIPP or SSAS, it would be prudent to seek professional financial advice sooner rather than later. Understanding how these arrangements may be affected by the proposed changes could help avoid unexpected complications.
  • Finally, if you have accumulated numerous pension pots over the years, it may be worth exploring whether consolidating them into a single arrangement is appropriate. However, consolidation should never be undertaken simply for convenience. Some pensions include valuable guarantees, protected benefits or investment options that could be lost if transferred. A thorough review with a qualified financial adviser is essential before making any decisions.

Good record keeping and early planning will not remove the impact of the new rules, but they can make the administration of your estate significantly easier for the people who will one day be responsible for dealing with it.

SJP Approved 20/8/2026