Overview
- Unused pension pots will be brought into the inheritance tax net from 6 April 2027 under changes announced in the 2024 Autumn Budget.
- Ministers have decided personal representatives, not pension providers, must report and pay any inheritance tax due on pension assets.
- The House of Lords Finance Bill sub-committee recommends a 12-month payment window for pension-related inheritance tax with a safe harbour from late interest where delays are beyond executors' control.
- Peers and industry groups warn the six-month timetable could delay probate, create cash-flow pressures and expose estates to late-payment interest currently charged at 7.75%.
- The Treasury projects the reform will raise about £1.5bn a year by 2030, while the government has not yet accepted the Lords' proposals and further technical rules are still to be set.