Inheritance tax and pensions

Produced in partnership with Kevin Gude of Keystone Law

Practice notes

Inheritance tax and pensions

Produced in partnership with Kevin Gude of Keystone Law

Practice notes

FORTHCOMING DEVELOPMENT: In the Autumn Budget 2024 of 30 October 2024, the Chancellor of the Exchequer made some key pensions announcements including bringing unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax (IHT) purposes from 6 April 2027.

In tandem with the Budget announcement, HMRC launched a technical consultation on these changes which closed on 22 January 2025.

These are summarised in this Practice Note, but will be subject to change and additional detail once responses to the technical consultation and draft regulations have been published.

For further information, see:

•
Autumn Budget 2024
•
News Analysis: Industry says Treasury announcement shutting IHT loophole overdue
•
HMRC consultation: Inheritance Tax on pensions: liability, reporting and payment (October 2024)
•
PLSA comments on Budget impact on pensions
•
Autumn Budget 2024: Overview of tax legislation and rates (OOTLAR)

This Practice Note describes how inheritance tax (IHT) rules affect the accrual and payment of benefits paid from HMRC-registered occupational and personal pension schemes. For

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Kevin Gude

Partner, Keystone Law

A group risk benefits and pensions law expert who advises employers, trustees, insurers and employee benefit consultancies. Over a career of more than 35 years, he has worked with employers’ finance, risk and HR teams on the design, implementation and revision of their businesses’ trust and contract-based benefit plans, including life assurance, medical and pension schemes.

Kevin’s reputation in his field has led many international businesses to turn to him for specialist, off-panel advice. His expertise includes providing specialist advice to insurers and other third-party product providers in the review and modernisation of the governing documentation and delivery of their health benefit and group risk products, and advising on legal and regulatory compliance details associated with customer-facing materials for new financial service products.