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

Majority of investors believe ChatGPT could provide 'reliable' financial advice

Majority of investors believe ChatGPT could provide 'reliable' financial advice

ChatGPT usage among younger investors rises to 70%

Isabel Baxter
clock 16 June 2025 • 2 min read
Willingness to pay for financial advice falls as other options open up

Willingness to pay for financial advice falls as other options open up

Perceived need for financial advice has fallen, Boring Money report finds

Isabel Baxter
clock 13 June 2025 • 2 min read
Women in Financial Advice Awards 2025: Complete your entries!

Women in Financial Advice Awards 2025: Complete your entries!

Entry period closes on 20 June

Professional Adviser
clock 12 June 2025 • 1 min read