IHT409 Form: Pensions — Complete Guide 2026

What is IHT409 and when do I need to complete it?

1IHT409 is the schedule submitted with IHT400 giving details of the deceased's pensions — other than the State Pension, which goes on the main IHT400.
2You need it if the deceased was getting a pension, had a lump sum or death benefit payable from a pension, had a drawdown fund, or changed their pension benefits in the two years before death.
3Under the rules up to 5 April 2027, most discretionary death benefits and unused defined-contribution pots fall outside the estate for inheritance tax — but you still report them here so HMRC can check.
4A lump sum that is payable to the estate (rather than at the scheme's discretion) is part of the estate and is taxable.
5From 6 April 2027 most unused pension funds and death benefits will be brought into the estate for inheritance tax — a major change to how pensions are treated.

Pensions are one of the trickier parts of an IHT400 submission, because whether a pension counts towards inheritance tax depends on how it was held and how the death benefit is paid. IHT409 is where you give HMRC the details to make that call. This guide explains who needs it, what goes on it, and the significant change coming in April 2027.

When you need IHT409

Complete IHT409 (and submit it with the IHT400) if any of the following applied to the deceased:

they were receiving a pension other than the State Pension;
a lump sum or death benefit is payable from a pension scheme because of the death;
they had a personal pension, drawdown fund or annuity they had not yet taken in full;
they changed, transferred or disposed of their pension benefits in the two years before death (HMRC asks this to check for transfers made while in ill health).

The State Pension is not declared on IHT409 — any arrears owed at the date of death go on the IHT400 itself.

What goes on the form

Continuing pension payments (questions 1 to 7): payments under the scheme that carried on after the death, and the value of the right to receive the remainder of any guaranteed payments. Note what the form tells you to answer ‘No’ to: small arrears of pension from the last monthly payment to the date of death, a reduced widow’s, widower’s or surviving civil partner’s pension, and payments made only because the provider did not know about the death. Small arrears go in box 56 of the IHT400, not here.
Lump sum death benefits: who they are payable to, and whether they are paid at the scheme's discretion or as of right. Discretionary payments are usually outside the estate; sums payable to the estate are inside it.
Death benefits (questions 8 to 16): what was payable, from which scheme, and the questions that decide the treatment — whether it was payable to the personal representatives because there was no one else to receive it, whether the deceased could have signed a binding nomination, and whether it was at the trustees’ discretion who received it. The amount goes in box 56 of the IHT400 unless the answer to the discretion question is Yes.
Transfers and changes (questions 17 to 21): any transfer or disposal of pension benefits, or change to the benefits the deceased was entitled to, in the two years before death, with the details given on page 16 of the IHT400.
Contributions in the last two years (questions 22 to 24): whether the deceased or their employer paid contributions into a pension scheme in the two years before death, who paid them, when and how much. This is a section executors routinely miss.
Pension annuities: these belong here, not on IHT410. IHT410 says so expressly: “Do not use this form to tell us about pension annuities. Use form IHT409, ‘Pensions’ instead.”

Your pension provider can give you the scheme details and the death benefit position — see our guide on collecting a pension death benefit.

The big change from 6 April 2027

From 6 April 2027, most unused pension funds and pension death benefits come into the estate for inheritance tax — reversing the long-standing position that kept them outside it. HMRC’s policy paper sets out the shape of it: personal representatives are liable for reporting and paying the tax; where they reasonably expect tax to be due they can direct the scheme administrator to withhold 50% of the taxable benefits for up to 15 months from the date of death and pay HMRC before releasing the rest. All death-in-service benefits from a registered scheme are excluded from the estate, as are exempt benefits, funds under £1,000 and continuing annuities. If you are dealing with a death on or after that date, pensions feed into IHT differently from what this guide describes for earlier deaths.

Read our guide to the 2027 pension inheritance tax changes →

Common mistakes

Assuming a pension is always tax-free — a lump sum payable to the estate is taxable, and the rules change from April 2027.
Forgetting to declare a change to pension benefits made in the two years before death — or the contributions paid in over the same two years, which the form asks about separately at questions 22 to 24.
Putting the State Pension on IHT409 instead of the IHT400, or missing State Pension arrears altogether.
Overlooking a guaranteed annuity that continues to pay after death.

Working through the IHT400 schedules?

When you need IHT409

Complete IHT409 (and submit it with the IHT400) if any of the following applied to the deceased:

they were receiving a pension other than the State Pension;

a lump sum or death benefit is payable from a pension scheme because of the death;

they had a personal pension, drawdown fund or annuity they had not yet taken in full;

they changed, transferred or disposed of their pension benefits in the two years before death (HMRC asks this to check for transfers made while in ill health).

The State Pension is not declared on IHT409 — any arrears owed at the date of death go on the IHT400 itself.

What goes on the form

Continuing pension payments (questions 1 to 7): payments under the scheme that carried on after the death, and the value of the right to receive the remainder of any guaranteed payments. Note what the form tells you to answer ‘No’ to: small arrears of pension from the last monthly payment to the date of death, a reduced widow’s, widower’s or surviving civil partner’s pension, and payments made only because the provider did not know about the death. Small arrears go in box 56 of the IHT400, not here.

Lump sum death benefits: who they are payable to, and whether they are paid at the scheme's discretion or as of right. Discretionary payments are usually outside the estate; sums payable to the estate are inside it.

Death benefits (questions 8 to 16): what was payable, from which scheme, and the questions that decide the treatment — whether it was payable to the personal representatives because there was no one else to receive it, whether the deceased could have signed a binding nomination, and whether it was at the trustees’ discretion who received it. The amount goes in box 56 of the IHT400 unless the answer to the discretion question is Yes.

Transfers and changes (questions 17 to 21): any transfer or disposal of pension benefits, or change to the benefits the deceased was entitled to, in the two years before death, with the details given on page 16 of the IHT400.

Contributions in the last two years (questions 22 to 24): whether the deceased or their employer paid contributions into a pension scheme in the two years before death, who paid them, when and how much. This is a section executors routinely miss.

Pension annuities: these belong here, not on IHT410. IHT410 says so expressly: “Do not use this form to tell us about pension annuities. Use form IHT409, ‘Pensions’ instead.”

Your pension provider can give you the scheme details and the death benefit position — see our guide on collecting a pension death benefit.

The big change from 6 April 2027

Read our guide to the 2027 pension inheritance tax changes →

Common mistakes

Assuming a pension is always tax-free — a lump sum payable to the estate is taxable, and the rules change from April 2027.

Forgetting to declare a change to pension benefits made in the two years before death — or the contributions paid in over the same two years, which the form asks about separately at questions 22 to 24.

Putting the State Pension on IHT409 instead of the IHT400, or missing State Pension arrears altogether.

Overlooking a guaranteed annuity that continues to pay after death.

Working through the IHT400 schedules?