The government’s plans to radically change how inherited pensions are taxed is poised to receive Royal Assent and become law, despite opposition from some industry groups and some public dissent.
The Finance (No. 2) Bill has made its way through the Commons and the Lords and is now in its final stages. Under the Bill, unused pension funds will be subject to inheritance tax (IHT) at up to 40% similar to other assets for the first time from April 2027. Quilter retirement specialist Adam Cole said: "The Royal Assent of the Finance Bill confirms beyond doubt that inheritance tax on pensions is happening. This represents one of the most significant changes to pension taxation in a decade and fundamentally alters long‑standing estate planning strategies." Cole said the rule chang...
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