What do the April 2027 inheritance tax changes mean for dentists?

With proposed changes to inheritance tax (IHT) due to take effect in April 2027, dentists may be wondering how their pensions, retirement plans and the wealth they plan to pass on could be impacted.

In a recent LinkedIn Live, experts from Wesleyan Financial Services, Rebecca Johnson and Richard Ollive, explored the potential implications for dentists and why taking a holistic approach to financial planning is important.

While much of the discussion around the changes has focused on pensions potentially becoming subject to IHT, the impact will depend on the final legislation and an individual’s wider financial circumstances,including their pension arrangements, property, investments and business interests.

Understanding the impact on your pension

For dentists, understanding how different pension arrangements may be affected is particularly important. NHS Pension Scheme (NHSPS) benefits and personal pensions can operate differently, so it’s worth considering how each of them fits into your wider retirement and estate plans.

The discussion also highlighted the importance of avoiding rushed decisions. Withdrawing pension funds or changing an existing arrangement solely to reduce a potential IHT liability could have unintended tax consequences and affect long-term retirement income. Any changes should be considered carefully in the context of your individual circumstances and financial goals.

Taking a considered approach to estate planning

There are also practical steps dentists can take to help ensure their affairs are in order. Reviewing pension records, checking beneficiary nominations and understanding how different assets may be treated for IHT purposes can help support effective estate planning and make things easier for loved ones in the future.

The key message is not to panic, but not to ignore the changes either. With April 2027 approaching, now is an opportunity to review your financial plans, understand the potential implications and consider whether your existing arrangements remain suitable for your retirement and family needs.

Find out more

If you’re a dentist and would like to understand how the proposed IHT changes could affect your financial plans, speak to a specialist financial adviser from Wesleyan Financial Services about your individual circumstances and the options available to you.

Advice charges may apply.

Please note the Financial Conduct Authority (FCA) does not regulate inheritance tax planning and trusts. Tax treatment depends on your individual circumstances and may be subject to change in future.

This article is sponsored by Wesleyan Financial Services.