Don't panic! Call for calm after Budget pensions IHT change

clock • 3 min read

Lisa Webster calls for a calm response to the IHT changes announced in the Budget earlier this month...

The announcement that pensions will fall within an individual's estate for inheritance tax (IHT) purposes shouldn't have come as a huge shock to those in the industry. The shocks came back in 2014 when George Osborne announced pension freedoms, including the unexpectedly generous treatment of death benefits, followed by Jeremy Hunt's scrapping of the lifetime allowance last year. Although I wouldn't be as bold as to say I predicted IHT applying to pensions, I did state that some kind of tax on death benefits was an obvious way to go – and was always more likely than the heavily rumour...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Changes to agricultural and business relief explained

Changes to agricultural and business relief explained

Government will publish a technical consultation in early 2025

Julia Peake
clock 11 December 2024 • 4 min read
Pension death tax – fair game?

Pension death tax – fair game?

Government took steps to reset the purpose of a pension

Lee Halpin
clock 11 December 2024 • 4 min read
Navigating the new pension and IHT terrain: Implications from the 2024 Budget

Navigating the new pension and IHT terrain: Implications from the 2024 Budget

New regulations create a more nuanced environment

Stephen Ford
clock 09 December 2024 • 5 min read