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.
As part of these changes, pension scheme administrators will become liable for reporting and paying any IHT due on unused pension funds and death benefits.
In tandem with the Budget announcement, HMRC launched a technical consultation on these changes which closes on 22 January 2025.
For further information, see also:
• Autumn Budget 2024,
• Law360: Industry says Treasury announcement shutting IHT loophole overdue
• HMRC consultation: Inheritance Tax on pensions: liability, reporting and payment
• PLSA comments on Budget impact on pensions
• Autumn Budget 2024: Overview of tax legislation and rates (OOTLAR)
An important facet of most, if not all, retirement benefit schemes is their ability to provide survivors’ benefits payable in the event of death, as well as benefits in the event of retirement due to old age or ill health.
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