The government is ploughing on with its plans to bring unused pension funds into the realm of inheritance tax (IHT) despite a “deluge of criticism” from industry practitioners during a consultation phase during which they put forward alternative options.
The Treasury has today (22 July) released draft legislation to bring undrawn pensions into scope for IHT from April 2027. AJ Bell head of public policy Rachel Vahey said HM Revenue & Customs (HMRC) had "blown its opportunity to bin the original proposals, stubbornly sticking with a system that will create confusion, complexity and additional costs for bereaved families". She explained the government had not listened to the industry despite experts putting forward alternative options which would have been "far more straightforward than bringing unspent pensions into IHT, while still ra...
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