The government's decision to include pensions in inheritance tax calculations from April 2027 will create increased financial and administrative burdens for bereaved families. Pensions will count towards an individual's estate for tax purposes, leading to a projected annual revenue increase of £1.46 billion by 2029-30. Critics, including industry leaders, have opposed this change, viewing it as harmful to grieving families. Personal representatives, typically solicitors or family members, will bear the responsibility for reporting pension assets and paying tax within six months to avoid interest charges.
"Despite significant pushback from the industry, pensions will now form part of inheritance tax calculations," he said. "This places yet another burden on grieving families."
The Treasury expects the policy to raise £1.46 billion per year by 2029-30, with 10,500 estates set to pay inheritance tax as a result, and a further 38,500 estates facing higher tax bills.
Collection
[
|
...
]