Inheritance tax will apply to pension pots even if workers die before retirement age as Rachel Reeves scrambles to fill a financial black hole, according to reports.
The Chancellor announced last year that retirement savings will be subject to the levy from April 2027.
At present, the pots are passed tax-free to beneficiaries of a will.
Under the new rules, funds could be taxed at 40 per cent, the i paper reported.
HMRC confirmed to the outlet the tax will apply even if the saver had never accessed the funds.
