Changes to pensions and IHT rules will be a 'bureaucratic nightmare' for families

LCP says changes announced in Autumn Budget will ‘greatly’ add to the burden families face

Martin Richmond
clock • 3 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Closing the advice gap: The case for attitudinal targeted support

Closing the advice gap: The case for attitudinal targeted support

TISA’s Sophie Legrand-Green on a ‘significant’ way to influence consumer behaviour

Sophie Legrand-Green
clock 14 May 2026 • 4 min read
UK IFA deal numbers hit 'new peak' in 2025

UK IFA deal numbers hit 'new peak' in 2025

Deals rose from 50 to 133 between 2020 and 2025

Sophia Panayi
clock 12 May 2026 • 4 min read
Phillip Wickenden: The political map has been redrawn

Phillip Wickenden: The political map has been redrawn

'The market is not pricing personalities. It is pricing discipline'

Phillip Wickenden
clock 11 May 2026 • 6 min read