Passing on wealth: How IHT changes will affect pension planning

For many years, pensions have been viewed as a tax-efficient way to pass on wealth to future generations. Many individuals have accumulated substantial pension funds, operating under the assumption that these savings could be transferred to their heirs with minimal tax implications. However, a significant policy shift is on the horizon that will reshape the way pensions are treated for inheritance tax (IHT) purposes. The government has announced that, from April 2027, any unused pension funds will be included in an individual's estate for IHT calculations. This marks a departure from ...