The government will add two amendments to the rules bringing most unused pension funds and pension death benefits into the scope of inheritance tax (IHT), while also tightening rules on liabilities linked to trusts.
The changes, outlined in HMRC communications seen by PA, will allow prospective personal representatives to direct pension scheme administrators to pay IHT directly to HMRC in certain circumstances, and amend how pension funds are treated under the rules for reduced IHT rates on charitable gifts. Most unused pension funds and pension death benefits will be included in the value of a person's estate for IHT purposes from 6 April 2027. The changes were legislated for in the Finance Act 2026. The first amendment will allow a prospective personal representative to direct pension scheme ad...
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