HMRC published its technical note on the April 2027 pension inheritance tax changes on 11 May 2026, and the industry reaction has rightly focused on the complexity of delivery. Most unused defined contribution pension funds and some pension death benefits are expected to fall within inheritance tax from April 2027 for the first time. Personal representatives may need to track down every pension a deceased member held. Scheme administrators may need to provide valuations, beneficiary details and payment calculations within tight deadlines. Legal experts are already warning that this could become one of the most administratively demanding changes the sector has seen.
All of that is true, and at the heart of this sits a real consumer outcome issue. Families dealing with bereavement may face delays, uncertainty and avoidable stress if pension arrangements are unclear or records are incomplete. Better communication today could materially improve that experience tomorrow. There is a communication problem sitting underneath all of it that deserves far more attention than it is getting.
Buried in the technical note is a line that should be a wake-up call for every pension provider and scheme administrator in the country. HMRC said pension schemes should begin encouraging members to keep up-to-date records in order to "significantly ease the administrative burden on their personal representative."
So HMRC is signalling, in plain terms, that the success of this regime will depend heavily on members being informed, prepared and organised before they die. If they are not, families could have to deal with fragmented records, including ones relating to historic workplace schemes, potentially with multiple providers and with no central register to fall back on.
Irwin Mitchell put it well: pension scheme administrators are likely to expect members to take more upfront responsibility for their pension arrangements, including maintaining clear and up to date expression of wishes forms.
That is a significant ask. And it raises an obvious question: how exactly are pension schemes supposed to communicate all of this to their members and get them to take action?
Think about what a member may now need to understand.
From April 2027, unused pension funds and many pension death benefits are expected to form part of a person's estate for inheritance tax purposes. There are important exceptions and reliefs. Death-in-service lump sums are expected to remain outside the scope of the changes. Transfers to spouses and civil partners are generally expected to benefit from the normal spouse exemption from inheritance tax. The reduced 36% inheritance tax rate where 10% of the net estate is left to charity is also expected to continue to apply.
Alongside the tax changes, there are proposed new administrative processes. Personal representatives may need to request pension valuations. Schemes may need to provide beneficiary information within prescribed timescales. HMRC is expected to introduce new calculation and reporting processes. Consultation documents have also outlined potential mechanisms allowing personal representatives to request temporary withholding of part of a pension payment while inheritance tax liabilities are assessed.
None of that is simple. And none of it is something most members are likely to absorb from a standard letter or PDF.
Research consistently shows that many individuals struggle to understand pension communications. That is based on existing communications around topics such as annual benefit statements and retirement options. The inheritance tax changes are as complex as anything members have previously been asked to understand.
If schemes respond to HMRC's guidance by issuing generic written communications explaining the new rules, the outcome is predictable. Many members will not read them. Others will not fully understand them. As a consequence, many may not act on them and families left to administer estates after April 2027 may struggle.
Video Canvas from FCX Technologies delivers personalised, interactive video experiences that adapt to each member's data. Every experience is written to a reading age of 14 using Plain English principles and avoiding unnecessary jargon. The built-in recap game also captures evidence of whether key messages were understood.
For the inheritance tax changes specifically, a Video Canvas experience could walk members through what the new rules may mean for them, personalised to their scheme type, age, benefits structure and nominated beneficiaries. It could explain the exemptions relevant to them. It could prompt them to review and update their expression of wishes forms. And it could encourage practical actions that reduce future administrative friction for families and schemes alike.
That matters because the communication challenge here is not simply about engagement. Better-informed members are more likely to:
- keep records up to date,
- maintain accurate expression of wishes forms,
- document their pension arrangements.
These could all help reduce complexity and delay. Clear evidence of member engagement and understanding may also help schemes demonstrate that they took reasonable steps to communicate member responsibilities as the new regime develops.
Research conducted across the UK pensions sector found that 88% of participants said they would value receiving financial communications through a Video Canvas experience, while 78% said they would be more inclined to engage with and consider changes to their pension after watching one.
The changes are expected to take effect from 6 April 2027. HMRC's timetable indicates that draft regulations, templates and further guidance will continue to emerge throughout 2026. Schemes that wait for final guidance before considering member communications may find themselves with very little time to act.
The smarter approach is to start planning now. Work out what members genuinely need to know. Work out how to explain it in a way they are actually likely to understand. And build communications that work.
Video Canvas experiences are already accessible to more than one million members across the UK to help explain pensions, annual benefit statements and retirement planning. The inheritance tax changes may be the next major communication challenge facing the sector. The technology to help address that challenge already exists.
If you are a pension provider or scheme administrator considering how to communicate the proposed inheritance tax changes to members, we would welcome the conversation.
Contact the Video Canvas team at fcxtechnologies.com/contact.
"Great video content is so engaging for members, especially when it is deeply personalised to them. We chose to partner with Video Canvas, not just for great tech, but for their creativity and their strong focus on security."
Chris Connelly
Chief Strategy Officer
