Comment and Blogs
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.
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.
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.
Last month I talked about the headaches and liabilities of being a personal representative (PR) for a deceased’s estate when pensions are included for inheritance tax (IHT) purposes from 6 April 2027.
I can’t be alone in thinking that the recent House of Lords committee sessions on the Finance Bill and, in particular, discussion on bringing unused pension pots into scope for inheritance tax (IHT) made for interesting viewing.
Ever since “tax-free cash” changed its official name to “pension commencement lump sum” back in 2006 there have been pre-Budget rumours that it was going to change – and not for the better.