Overview
- Labour’s 2024 Autumn Budget set out that, from April 2027, unused private pensions will fall within inheritance tax, which is charged at 40% above allowances.
- Saltus’s Alex Pugh said the firm is discussing the change with every potentially affected client and that no one has expressed a lack of concern.
- Advisers warn liabilities could rise sharply because property and pensions are often the largest assets in an estate.
- It has been indicated that personal representatives will calculate the liability and notify pension providers, but detailed processes and collection mechanics are still being finalised.
- Planning options are limited because many retirees rely on pension pots for income, while current allowances include a £325,000 nil‑rate band and a £175,000 residence band that can be transferred to a spouse to shield about £1 million.