Group life cover excluded from IHT liability

The plans are set to include pensions within IHT from April 2027 and are expected to raise £1.5bn per year by 2029/30, with the average IHT burden expected to increase by £34,000. Currently, a death in service benefit is only subject to IHT where the pension scheme or trust from which it is paid is non-discretionary, i.e. those that are treated as part of an individual's estate. The consultation originally included lump sum death benefits in the scope of IHT, meaning death in service benefits would have been brought into the scope of IHT changes from 6 April, 2027. This notion was ...