Stop the double tax (IHT & Income Tax) of pension funds & death benefits
The Government are introducing inheritance tax to pension funds & death benefits from April 2027. When you die this may now result in a disproportionate and unfair double taxation on beneficiaries (income tax and inheritance tax) which we think results in a disincentive to funding a pension.
Signatures
25,904
signatures
Government response threshold (10,000) · 10,000/10,000 · reached
Debate threshold (100,000) · 25,904/100,000
- 07 FEB 2026Petition closedFinal total: 25,904 signatures
- 18 SEPT 2025Government respondedHM TreasuryGovernment reply
More than 90 per cent of estates will still pay no inheritance tax each year. The Government is continuing to incentivise pensions for their intended purpose of funding retirement.
Read full response - 03 SEPT 202510,000 signatures reachedEligible for a government response
- 07 AUG 2025Petition opened for signatures
Background
We think the Government need people to take responsibility for providing income in retirement and the simplest and most effective way for the majority to achieve this is a pension. We think the tax on pensions funds & death benefits is a disincentive for most people to funding a pension. Many people want to leave their pension fund & death benefits to their chosen beneficiaries (usually children / grandchildren). We think this double taxation - income tax and inheritance tax means a lot of beneficiaries may have to pay 67% tax.