Changes to pensions and IHT rules will be a 'bureaucratic nightmare' for families

LCP says changes announced in Autumn Budget will ‘greatly’ add to the burden families face

Martin Richmond
clock • 3 min read

The government’s decision to include pensions and pensions death benefits within estates for inheritance tax (IHT) will be a “bureaucratic nightmare for grieving families”, Lane Clark & Peacock (LCP) has said.

In her Budget speech to parliament on Wednesday (30 October), chancellor Rachel Reeves confirmed inherited pensions will be subject to IHT from 2027, a decision which is set to have an impact on both defined benefit and defined contribution schemes. Alongside the chancellor's announcement, the government published a consultation which said pension scheme administrators will become liable for reporting and paying IHT due on pensions to HM Revenue & Customs (HMRC). LCP partner and former pensions minister Steve Webb said bereaved families currently face two major challenges when it come...

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 Your profession

PA Asks: How concerned are your clients about the impact of Trump tariffs?

PA Asks: How concerned are your clients about the impact of Trump tariffs?

This week’s poll also looks at consolidation and the Lifetime ISA

Professional Adviser
clock 04 February 2025 • 1 min read
Transact to streamline adviser fee reconciliation with CURO integration

Transact to streamline adviser fee reconciliation with CURO integration

New API connection to reduce manual admin for financial advisers

Sahar Nazir
clock 04 February 2025 • 1 min read
Saba Capital defeated at Baillie Gifford US Growth and Keystone meetings

Saba Capital defeated at Baillie Gifford US Growth and Keystone meetings

USA and KPC meetings

Linus Uhlig
clock 03 February 2025 • 3 min read