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

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Continuing pension payments: any pension that carried on being paid (for example to a spouse) and any instalments due but unpaid at the date of death.
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.
Changes in the last two years: details of any transfer, or any decision to defer taking benefits, made within two years of death.
Drawdown and annuities: the value of any unused drawdown fund and details of any guaranteed annuity payments continuing after death.

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

The government has confirmed that, from 6 April 2027, most unused pension funds and pension death benefits will be included in a person's estate for inheritance tax — reversing the long-standing position that kept them outside it. If you are dealing with a death on or after that date, the way pensions feed into IHT will be different 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.
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?

Farra helps you work out which schedules apply and what to put on each one, step by step.

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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

Completing these forms yourself?

1 in 3 applications are sent back for form errors. In 2 minutes, we'll check the fields people most often get wrong — before you submit.

Check my application

Continuing pension payments: any pension that carried on being paid (for example to a spouse) and any instalments due but unpaid at the date of death.

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.

Changes in the last two years: details of any transfer, or any decision to defer taking benefits, made within two years of death.

Drawdown and annuities: the value of any unused drawdown fund and details of any guaranteed annuity payments continuing after death.

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.

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?

Farra helps you work out which schedules apply and what to put on each one, step by step.

Get started

IHT409 Form: Pensions — Complete Guide 2026

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

When you need IHT409

What goes on the form

The big change from 6 April 2027

Common mistakes

Probate — only if you actually need it

IHT409 Form: Pensions — Complete Guide 2026

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

When you need IHT409

What goes on the form

The big change from 6 April 2027

Common mistakes

Probate — only if you actually need it