Are your clients’ Expression of Wish forms ready for the 2027 IHT shift?

One of the biggest headlines from Rachel Reeves’ first Budget as Chancellor back in October 2024, certainly from a financial planning perspective, was the proposal to include the value of inherited pensions in an individual’s estate for inheritance tax (IHT) purposes from 6 April 2027. For some individuals, this change is likely to require a reset in the way they approach decumulation. However, it also means that many individuals may well need to review their Expression of Wish form – or to complete one where one hasn’t already been submitted.  

As you will know, an Expression of Wish form allows a client to name the individuals the administrator of a pension scheme should consider when exercising discretion as to whom any benefits may be paid. The client can choose who they would prefer the money to go to and in what proportions. It also allows the scheme administrator to pay the money as one-off lump sums or through beneficiary’s flexi-access drawdown, whichever best suits the beneficiaries and their tax position in the future. 

If an Expression of Wish form has not been completed, then the scheme administrator decides who the benefits are to be paid to and this may not match the client’s intentions. It may also only be possible to pay the money to the beneficiaries as one-off lump sums, and not as regular pension withdrawals. 

So, having an up-to-date Expression of Wish form on file is vital when it comes to succession planning. However, this is often not the case. For example, we do not hold an Expression of Wish form for a significant proportion of the pension accounts we administer on our platform. What’s more, for where we do hold an Expression of Wish form, many were completed more than five years ago. While most will likely require no change, this should ideally at least be established with the client on a regular basis. 

Help is at hand through the Pension Summary report

The good news is, identifying clients that have or have not completed an Expression of Wish form for their Fidelity Pension is a very quick and straightforward process. Our Pension Summary report has been designed to give you all the information you need at a touch of a button. Importantly, it not only specifies whether we have received an Expression of Wish form for a client or not, it also lists the date of the ones that have been recorded on our system. Furthermore, on a separate ‘beneficiaries’ tab, it lists the following information where held: 

• Pension account type 
• Beneficiary type 
• Number of beneficiaries or nominees 
• Beneficiary names 
• Beneficiary percentage 
• Beneficiary relationship. 

In addition to Expression of Wish information, the Pension Summary report details pension contribution details for each client, pension withdrawals along with regular taxable income and tax information, details on pension limits and a tab dedicated to phased drawdown instructions. Therefore, it represents a really useful source of data, especially in the run up to the tax year end. 

The Pension Summary report can be set up to run automatically on a daily or weekly basis. It can also be requested on an ad-hoc basis. It is downloadable in Excel format, which makes it easy for you to manipulate the data, saving you time when reviewing your clients’ pension accounts. More information on this valuable report can be found in our guide. 

Quick and easy access 

The Pension Summary report is just one of the many reports available through our Reporting Services facility and is delivered through our online Client Management system (our full range of reports are detailed on our Reporting Services web page). This ensures your company’s confidential data remains protected at all times and allows you to control who in your organisation can have access to it.  

If you do not currently have access to Reporting Services, you simply need to set up user login details online. If your firm is already set up with access to our online services, please contact your firm administrator who will be able to set you up with individual login details.