Malcolm Finney looks at the key inheritance tax changes in relation to pensions proposed in Autumn Budget 2024.
On 30 October 2024, an open consultation was published by HMRC entitled ‘Technical consultation: Inheritance Tax on Pensions: liability, reporting and payment’; the consultation ran for 12 weeks between 30 October 2024 and 22 January 2025. The proposals will apply to UK-registered pension schemes (and so-called ‘QNUPS’ (qualifying non-UK pension schemes)). The new changes will operate in practice from 6 April 2027.
HMRC’s justification for the proposed changes is that, in their view, pension schemes have been increasingly used and marketed as a tax planning tool to transfer wealth without an inheritance tax (IHT) charge, rather than for their intended purpose of funding retirement.
IHT charge on death
The proposals
