Pensions and inheritance tax: What is changing?
The Autumn Budget 2024 announced significant changes to inheritance tax (IHT) and pensions, with most unused pension funds expected to fall within the scope of IHT from April 2027. These proposals could have a major impact on retirement and estate planning, particularly for those who have viewed pensions as both a source of retirement income and a tax-efficient way to pass wealth to future generations. In our video, we explain what is changing, who may be affected, and why now is the time to review your existing plans. We also explore the potential tax implications for beneficiaries, including situations where inherited pension assets could be subject to both IHT and income tax, resulting in a substantial overall tax burden.
The good news is that pensions continue to offer valuable benefits, including tax relief on contributions, tax-efficient growth and flexibility. Our video highlights a range of planning opportunities that may help families adapt to the proposed changes, including gifting strategies, beneficiary reviews, trust planning and life insurance solutions. We also discuss the importance of intergenerational planning and having open conversations about wealth transfer and long-term objectives. With the new rules not expected to take effect until April 2027, there is still time to assess your position and consider appropriate action. If you would like to discuss how these changes could affect your retirement and estate plans, please get in touch with Bartlett to arrange a personal review.
