Pensions IHT exemption removal 'will come as a blow'

The warning has come as chancellor Rachel Reeves confirmed in yesterday's (30 October) Budget that pensions passed on will be subject to IHT from April 6, 2027. Previously, pensions could be passed on free of inheritance tax (IHT), allowing many people to use pensions as a tax-efficient vehicle to pass on wealth to their heirs. "The removal of the IHT exemption will result in a double tax hit for beneficiaries, although the normal exemption for spouses and civil partners will continue to apply," Greer said. "For families inheriting larger pension pots, this will lead to significant...