No more IHT relief on pensions: How to maximise alternative tax-efficient vehicles

In the light of the government’s latest Budget

clock • 5 min read

With pension pots set to be included in an individual’s estate for IHT from 2027, financial planner Jordan Wheatley explains the importance of diversification and why high-net-worth individuals need to consider the full scope of tax-efficient investment vehicles available to them...

Substantial changes to inheritance tax (IHT) have always been under sharp scrutiny in the lead-up to any government Budget. However, it has remained relatively untouched – until now. The Autumn Budget 2024, introduced by chancellor Rachel Reeves, brought significant changes to the tax treatment of pensions, specifically in relation to inheritance tax (IHT). As of April 6, 2027, pension funds and death benefits from pensions will be included in an individual's estate for IHT purposes. In recent years pensions have been exempt from IHT, meaning if the pension holder died before age ...

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 Tax planning

Safeguarding clients in a world of increasing HMRC activity

Safeguarding clients in a world of increasing HMRC activity

'It is important that financial advisers stay informed and proactive'

Louisa Beciri and Tom Lewis
clock 23 April 2025 • 4 min read
IHT receipts swell to record £8.2bn for 2024/25

IHT receipts swell to record £8.2bn for 2024/25

10% higher than last year, commentators note

Jen Frost
clock 23 April 2025 • 2 min read
HMRC gears up for an increase in criminal investigations

HMRC gears up for an increase in criminal investigations

'Criminal investigations are reserved for the most egregious cases'

John Hood
clock 17 April 2025 • 4 min read