Call Today
A major tax change in the UK could have serious consequences for thousands of British expats living in Australia with pension savings left behind in the old country.
From April 2026, pension pots inherited after the age of 75 will no longer be tax free for beneficiaries. Instead, they’ll be taxed as income, at the recipient’s marginal rate – potentially as high as 45%.
And from April 2027, the UK is going a step further – pensions will be brought into the scope of inheritance tax too.
This 2027 change is a fresh move from the UK Treasury. Pensions, which were previously exempt from UK estate taxes, will now potentially face double taxation – income tax plus inheritance tax.
If you’re an Australian tax resident with a UK pension and you’re assuming it’ll all pass seamlessly to your family one day, then think again.
Copyright 2026 UK Pensions Melbourne | Website Design by Fox & Lee
"*" indicates required fields