Changes announced in the October 2024 budget
The Chancellor announced in her Autumn 2024 Budget Speech that from 6 April 2027, unused pension funds and death benefits will be included within your estate for inheritance tax (IHT) purposes. A technical consultation has been published on how this would work. That consultation closed on 22 January 2025
The consultation document states that if you are aged over 75 when you die, payments are potentially subject to income tax in the hands of the recipient, this will remain the case and will apply to the amount received net of IHT.
You can read more about these announced changes at: https://www.standardlife.co.uk/articles/article-page/autumn-budget-changes
