Seismic shift: Government pushes ahead with pension IHT reforms

'Despite these changes, pensions remain incredibly tax-efficient tools'

clock • 3 min read

IHT changes leave clients and advisers facing a seismic shift in the tax treatment of pensions and fundamentally how pension pots will be treated in estate planning, writes Steve Berridge

The government has confirmed it is pushing ahead with its plan to bring discretionary pension scheme death benefits within the scope of inheritance tax (IHT) for the first time. This announcement was probably not a surprise, although some in the pension industry had been trying to persuade the government to either abandon the plan or at least modify it. A policy paper was published on the same day, in which the Exchequer impact is estimated to bring in an additional £1.46bn to the treasury by 2029 to 2030. There were two concessions made, which have been welcomed by pension commen...

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