IHT on pensions: Getting the practicalities right

The proposed extension of inheritance tax (IHT) to unused pension funds and death benefits represents one of the most significant changes to estate administration in recent years. While recent HMRC guidance has provided some technical clarification, a number of important practical issues remain unresolved. The Budget is an opportunity for the government to resolve them before the new rules take effect in April 2027. In a recent letter to financial secretary to the Treasury James Murray, STEP highlighted several areas where further legislative refinement is needed to ensure the new reg...