Autumn Budget 24: 'Surprise' IHT on pensions puts advisers on high alert

Unexpected IHT shift to include pensions has left advisers racing to adapt estate strategies

Sahar Nazir
clock • 3 min read

Chancellor Rachel Reeves delivered the Autumn Budget 2024 last week (October 30) with a clear focus on increasing tax revenue through adjustments in inheritance tax (IHT), capital gains tax (CGT), and corporate contributions. Industry professionals and financial planners are now responding to the shifts, highlighting both challenges and opportunities for clients, particularly high-net-worth individuals and business owners.

The surprising inclusion of pensions within IHT rules from 2027 has raised questions about estate planning and underscored the need for advisers to adapt quickly. Inheritance Tax on pensions sparks concerns The decision to subject pensions to IHT from 2027 took many by surprise. Financial planners such as Nicholas Sinclair-Wilson, director of client services at BRI Wealth Management, saw the IHT changes as a notable adjustment but felt they were less severe than anticipated. "The IHT change to pensions was a surprise," he said, adding that it was not the most "nuanced" approach and wil...

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