IHTM17036 | Pensions: IHT exclusions: rights to a pension or annuity
From HM Revenue & Customs · Inheritance Tax Manual
Under , the value of an interest in:
a registered pension scheme (),
a qualifying non-UK pension scheme (), or
a section 615(3) scheme (),
that comes to end on the death of the person entitled to it is excluded from the value of their estate if the interest:
is, or is a right to, a pension or annuity
is not a benefit provided otherwise than by way of a pension or annuity.
Death benefits do not fall within this exclusion.