In the Autumn Budget document released after chancellor Rachel Reeves made her speech yesterday (26 November), the government confirmed changes for personal representatives (PRs) affected by the inheritance tax (IHT) on pensions regime from 2027.
PRs will now be able to direct pension scheme administrators to withhold 50% of taxable benefits for up to 15 months and pay IHT due in certain circumstances. In addition, PRs will also be discharged from a liability to pay the IHT on pensions discovered after they have received clearance from HM Revenue & Customs (HMRC). Both these will be legislated for in Finance Bill 2025/26 and take effect from April 2027. Previously, only the beneficiaries could instruct the scheme administrator (SA) to pay IHT from the pension, not the PRs. Nucleus technical director Andrew Tully said: "Ther...
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