Latest Blogs
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Tilley: Will IHT reforms really threaten pension saving?
The Government’s decision to bring most unused pension funds and lump sum death benefits within the scope of inheritance tax (IHT) from 6 April 2027 has provoked widespread criticism from across the pensions industry. Providers, advisers and trade bodies have warned that the change risks undermining confidence in pension saving and damaging long term retirement provision.
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Lisa Webster: Charity giving from pensions
I’m sure many of you reading this on SIPPs Professional will have had more than a few conversations with clients about estate planning – especially considering the news that pensions are to be included in the value of the estate for IHT purposes from April 2027.
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Lisa Webster: Salary sacrifice cap will hit some hard
The headline story from Budget 2025 - in the pension world at least - was the plan to cap National Insurance relief for pension contributions paid through salary sacrifice at £2,000 a year.
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Lisa Webster: Pension age uncertainty lingers on
We’ve known for many years that normal minimum pension age, NMPA it's known, is going up.
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Tilley: Rebooting the FOS makes sense
I’ve written before about the lack of coherence in the UK’s pension complaints landscape and it remains a source of real frustration for those of us working in the sector.
Popular News
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SIPP provider Heritage declared in default
The Financial Services Compensation Scheme has declared SIPP provider Heritage Pensions Limited (FRN 475096) in default three years after the firm went into liquidation.
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39% lack confidence about pension planning
Almost two in five, 39%, of people lack confidence with pension planning, while nearly half, 48%, said they don’t feel confident investing, according to a new study.
Pensions and SIPP consultancy Barnett Waddingham has boosted its Scottish presence by opening a new office in Edinburgh.
Aberdeen has today launched a new and enhanced Self-Invested Personal Pension (SIPP), and free Junior SIPP.
Pension trustees have been urged to take action to beat pension fraud, as analysis of Action Fraud reports has shown that savers over 55 are most at risk.
Angela Byrne has been appointed as CEO of Standard Life’s pension and savings business.
The Chancellor announced in the Budget that the freeze on inheritance tax thresholds will be extended for a further year to 2030-31.
By then the government will rake in a predicted £14.5bn per year from the tax.
IHT receipts are forecast to raise £9bn in 2025/26, a 4.5% increase from last year with receipts expected to continue to increase over the forecast period.
Receipts will continue to climb, driven by rising house and equity prices and the impact of the polices announced at the Autumn Budget 2024, reaching £14.5bn in 2030/31.
Relative to the OBR’s March forecast, receipts are expected to be £0.8bn lower by 2029/30 due to lower in-year outturn which is only partially offset by higher forecast equity prices.
Simon Martin, head of UK technical services at Utmost Wealth Solutions, said: “Inheritance tax receipts are set to increase from last year and over the forecast period as frozen thresholds, rising asset prices, a tightening of the regime at the Autumn 2024 Budget and extending the freeze on IHT free allowances combine to drive increasing collections for the Treasury.
“It sets the scene for continued demand for professional advice as high-net-worth clients look to understand how they may be impacted.”
Rachael Griffin, tax and financial planning expert at Quilter, said: “Inheritance tax is one of the UK’s most hated taxes. What was once a tax on only the wealthiest families will increasingly impact those with even relatively modest estates, who after a decade of frozen thresholds alongside rising house prices, will be snagged by the tax. Add to that the significant changes coming in April 2027, when pensions will be drawn into taxable estates, and the government looks set to cash in on an ever-expanding pool of taxpayers.”
She pointed out that alongside the freeze on thresholds, inheritance tax free allowances have also been frozen until 2030-31.
Ms Griffin said: “While they won’t be getting any more generous, maximising every available allowance will be vital for families looking to ensure they pass on as much of their wealth as possible, while leaving as little as possible in the hands of the taxman.”
The government will put a cap on salary sacrifice on pensions to save around £4.7bn, it was revealed in the Budget.