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HMRC Pension Change on How Pots Will Be Taxed when Someone over 75 Dies
HMRC says executors will handle reporting and tax liability as the reforms aim to curb pension-based wealth transfers.
- From April 6, 2027, HMRC confirmed in new guidance that most unused pension funds and pension death benefits will be incorporated into a deceased person's estate for Inheritance Tax purposes.
- The Labour Party government intends to remove inconsistencies in Inheritance Tax treatment of different pension types, aiming to prevent schemes from being marketed as wealth transfer tools rather than retirement savings.
- Managing Director Tim Grimsditch warned that personal representatives must contact every pension provider for valuations, a complex process that will make probate take longer, "leaving families waiting."
- Tobias Robinson, CEO of DayTrading, warned that many people's "set and forget" pension approach may no longer make sense, urging savers to review estate planning before the changes take effect.
- While more than 90% of estates will continue to pay no Inheritance Tax, recent data shows 5,000 additional estates became liable for the tax, with 32,000 estates subject to it in 2025/26.
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26 Articles
HMRC confirms when pension tax relief ends as retirees face inheritance tax changes
HM Revenue and Customs (HMRC) has confirmed that pension savers lose their entitlement to tax relief on personal pension contributions from their 75th birthday onwards.Under current HMRC rules, the Government stops adding basic-rate tax relief to any payments made into a pension once a person reaches the age of 75.In its official guidance on pensions tax, HMRC said: "Although contributions can be paid after a member has reached the age of 75, th…
·London, United Kingdom
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Coverage Details
Total News Sources26
Leaning Left1Leaning Right2Center23Last UpdatedBias Distribution88% Center
Bias Distribution
- 88% of the sources are Center
88% Center
C 88%
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