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

Feel Good Friday: Quilter pledges £3m towards financial education

Feel Good Friday: Quilter pledges £3m towards financial education

Alongside £1m in grants supporting charities

Professional Adviser
clock 13 February 2026 • 1 min read
Brits unlikely to see IFAs despite Budget impact

Brits unlikely to see IFAs despite Budget impact

Just 19% were likely to seek advice, Continuum finds

Isabel Baxter
clock 12 February 2026 • 3 min read
Treasury consults on AR regime adding further FCA and FOS permissions

Treasury consults on AR regime adding further FCA and FOS permissions

Amid concerns about consumer harm and weaknesses in oversight

Isabel Baxter
clock 12 February 2026 • 3 min read