Inheritance Tax on pensions: liability, reporting and payment
We welcome views on this technical consultation on the processes required to implement changes to Inheritance Tax rules for pension funds and death benefits.
As announced at Autumn Budget 2024, from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for Inheritance Tax purposes and pension scheme administrators will become liable for reporting and paying any Inheritance Tax due on pensions to HMRC.
This is a technical consultation on the processes required to implement these changes for UK-registered pension schemes. It is likely to be of interest to individuals, pension scheme administrators and other pensions professionals, tax and legal practitioners.
After the consultation, the government will publish a response document and carry out a technical consultation on draft legislation for these changes in 2025.