Govt pushing ahead with pensions IHT in bid to raise £1.5bn a year

Plans to apply inheritance tax (IHT) on pensions were confirmed by the government on Monday, despite numerous industry warnings over the plan. 

From April 2027 IHT will be applied on unused pension funds and death benefits, with the government predicting this will raise around £1.5bn a year by the 2029/30 tax year. 

Chancellor Rachel Reeves had first announced the intention to apply IHT to pensions in her Autumn Statement last year.