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

AI's energy demands pose responsible investing challenge

AI's energy demands pose responsible investing challenge

Advisers must rethink sustainable investment strategies to balance returns and ESG goals

Sahar Nazir
clock 07 March 2025 • 2 min read
More female advisers 'key to closing gender advice gap'

More female advisers 'key to closing gender advice gap'

'We are still a long way from gender equality in financial services’

Isabel Baxter
clock 07 March 2025 • 2 min read
PA Asks: Has the FCA got its one-year email deletion policy right?

PA Asks: Has the FCA got its one-year email deletion policy right?

This week’s poll also looks at HNWI UK exodous and the IHT gifting regime

Professional Adviser
clock 07 March 2025 • 1 min read