Estate Administration: Changes to Pension IHT 'Will Complicate Estate Administration'
Thursday 13th February 2025
Katy Baxter
Consultation has now closed on the UK government's plans to charge inheritance tax (IHT) on unused pension funds and death benefits from 6 April 2027, as announced at the 2024 Budget statement. Some respondents say the scheme will cause significant delays in payouts to beneficiaries and place a significant administrative burden on pension scheme administrators (PSAs). PSAs will become liable for reporting and paying any IHT due, although after 12 months the beneficiaries will become jointly and severally liable for the tax. Overall there is much uncertainty over these changes so we will keep you informed as and when we receive the details of what is published. If you would like to read the scope of the HMRC consultation please click here to get an idea of what is being considered.