The levying of inheritance tax (IHT) on unused pension funds will "create confusion and increase the risk of gifting mistakes for the bank of mum and dad and gran and grandad", according to equity release adviser Key Advice.
The addition of IHT liability on unused pensions will come into effect from 6 April 2027, as announced in chancellor Rachel Reeves' Autumn Budget. Key Advice has joined calls that making unused pension assets liable to IHT will add new layers of complexity to retirement and estate planning. The firm set out that the rule change could make decisions around gifting and the choice of which assets to draw on more difficult, increasing the likelihood of costly mistakes such as higher tax bills or a reduced standard of living. It suggested that parents and grandparents facing potential IHT ...
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