The government’s decision to include pensions and pensions death benefits within estates for inheritance tax (IHT) will be a “bureaucratic nightmare for grieving families”, Lane Clark & Peacock (LCP) has said.
In her Budget speech to parliament on Wednesday (30 October), chancellor Rachel Reeves confirmed inherited pensions will be subject to IHT from 2027, a decision which is set to have an impact on both defined benefit and defined contribution schemes. Alongside the chancellor's announcement, the government published a consultation which said pension scheme administrators will become liable for reporting and paying IHT due on pensions to HM Revenue & Customs (HMRC). LCP partner and former pensions minister Steve Webb said bereaved families currently face two major challenges when it come...
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