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

Most client meetings happen without one of the advised couple present

Most client meetings happen without one of the advised couple present

More than half of clients said they hold the adviser relationship in their name only

Laura Miller
clock 17 September 2026 • 2 min read
Titan Wealth to provide financial education to pro cricketers

Titan Wealth to provide financial education to pro cricketers

Professional sport comes with 'a very different financial journey'

Laura Miller
clock 16 September 2026 • 2 min read
CII New Gen group takes on young adviser shortage

CII New Gen group takes on young adviser shortage

Hollee Vivian launches initiative with adviser peers

Isabel Baxter
clock 15 September 2026 • 4 min read