Pension providers say they are already overhauling systems and operations ahead of the April 2027 inheritance tax (IHT) reforms, but some say that meeting the new administrative demands may prove “challenging”.
From April 2027, pension pots left unused at death will fall fully within IHT unless qualifying for exemptions – a major shift from the current approach, where most untouched defined contribution (DC) pensions fall outside the estate. Nearly half of financial advisers say clients are already scaling back pension contributions to prioritise IHT planning ahead of new rules treating unused pension funds as part of estates, according to research from investment manager Downing. Downing said last month that 47% of advisers are reporting that clients are reducing contributions to fund alter...
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