The Government has announced further changes regarding how the inheritance tax (IHT) regime will operate once pension scheme death benefits become subject to IHT in April 2027.
Personal representatives will be able to direct pension scheme administrators to withhold 50% of taxable benefits for up to 15 months and pay IHT due in certain circumstances. Personal representatives will be discharged from a liability for payment of Inheritance Tax on pensions discovered after they have received clearance from HMRC.
Inheritance tax can be complex and you may wish to take financial advice.
