Summer Signals: Six questions with Fairway’s team on the trends shaping client conversations

Welcome to Summer Signals, our new Q&A series exploring the trends and client conversations shaping the months ahead.
Across the series, we’ll be asking people from across Fairway the same six questions to uncover what they’re seeing in the market, where clients are facing challenges, and what advisers should be thinking about.
In this article, Peter Culnane, Director and Head of Pensions, shares his insights on the growing interest in moving pension arrangements outside the UK, the impact of upcoming inheritance tax changes, and the key considerations for clients and advisers reviewing their long-term estate planning strategies.

What’s one thing you’re seeing more of from clients or advisers at the moment?

One trend we are seeing more frequently is enquiries about transferring pension arrangements out of the UK. Both clients and advisers are increasingly reviewing existing pension structures and seeking to understand whether alternative arrangements may better support their long-term estate planning objectives. As a result, there is a growing focus on the potential benefits of non-UK pension solutions and how they may fit within a wider wealth preservation strategy.

What’s driving that trend?

Much of the recent interest has been prompted by changes announced in the UK Budget, specifically the introduction of Inheritance Tax (IHT) on UK pension funds from April 2027. Historically, UK pensions have often formed an important part of estate planning due to their favourable tax treatment on death, however, the proposed changes have caused many individuals and advisers to reassess whether the existing location of pension arrangements remains the most suitable option for their circumstances.

What challenges does it create for clients?

The changes create a number of considerations for individuals who may no longer believe their UK pension falls outside the scope of inheritance tax. Even where a client is resident in Jersey and has no other UK tax exposure, their UK pension fund could still potentially be subject to UK IHT, above the applicable nil-rate band. This has the potential to reduce the value ultimately passed on to beneficiaries and may alter long-established succession and wealth transfer plans.

How should clients or advisers be thinking about it?

Clients and advisers should review the location of their pension arrangements as part of a broader estate planning exercise rather than considering them in isolation. While Jersey residents are not currently subject to wealth taxes, these UK pension interests may soon be treated differently. Understanding the potential tax implications, reviewing existing structures and considering whether alternative arrangements may be more appropriate have therefore become an important part of future planning. Seeking professional advice early can help ensure any decisions are aligned with an individual’s overall financial and family objectives.

What’s one mistake or misconception you often see in this area?

One area of uncertainty relates to Jersey residents whose employers utilise UK-based group pension schemes for their Jersey workforce. Many individuals assume that, because they live and work in Jersey, their pension benefits are fully outside the scope of UK tax considerations. However, under the proposed rules, these arrangements may still be exposed to UK IHT. Given the evolving nature of the legislation, there is still a degree of ambiguity surrounding how some situations will be treated, making it important for affected individuals to understand their potential exposure and seek advice where necessary.

How can Fairway help?

Fairway is one of Jersey’s leading providers of pension solutions and works closely with local advisers, employers and individuals to navigate an increasingly complex landscape. Our experienced team can assist clients’ financial advisers, who are reviewing existing pension arrangements, to explore suitable Jersey-based alternatives where appropriate. By taking a proactive approach and seeking guidance via their financial advisers, clients can review their current arrangements and explore alternate solutions, if required.