Next year, a major rule change will mean thousands of families will start owing tax when they inherit their loved ones’ pensions.
Inheritance tax (IHT) is sometimes referred to as Britain’s “most hated tax” and it will soon affect more people.
From April 2027, previously exempt pension pots will be brought into the calculation of a person’s estate – which includes their home, savings and other assets – for IHT purposes.
The change is expected to pull thousands of families into the IHT net who would previously have been able to pass on their assets tax-free.
As families try to avoid part of their financial legacies going straight to the taxman, experts expect – and are already seeing – a big shift in how wealth is passed down, which could have a significant impact on the economy.
