11 February 2025
In the autumn 2024 budget, the chancellor announced that certain types of pension payments will form part of an individual’s estate for inheritance tax purposes from April 2027.
This means that pension lump sums and death benefits from a pension can no longer be passed on tax free to your beneficiaries but will be added to the rest of your estate: property, money, possessions, etc. when working out if any inheritance tax is due.
The rules are complex, and a government consultation is under way to determine how this new approach will be put into practice.
In the meantime, you should continue to keep your Expression of wish form updated, specifying how much of your death benefits you would like each beneficiary to have. It’s a good idea to review your Expression of wish regularly. You can update your nominations on PlanViewer if your circumstances have changed.