New inheritance tax rules will drastically change pension use
New inheritance tax rules will drastically alter how people use their pensions, and put a lot of individuals in difficult positions, writes Steve Gauke.
The inheritance tax rules set to take effect in April 2027 will significantly alter how individuals use their pensions, potentially putting many families in difficult financial positions. This change may result in unexpected tax liabilities for thousands of families, who may not be aware of the new rules until it's too late to prepare.
With an estimated 10,500 estates paying inheritance tax for the first time and an average bill increase of £34,000, this shift will drastically alter pension use and create cash-flow pressures for beneficiaries. The good news is that families still have time to prepare by having open conversations, understanding the estate's composition, locating important documents, and seeking independent financial advice to explore options for accessing funds.
Brief written by urgent.news from City AM's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
