{"id":864265,"date":"2026-08-22T10:40:15","date_gmt":"2026-08-22T10:40:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/864265\/"},"modified":"2026-08-22T10:40:15","modified_gmt":"2026-08-22T10:40:15","slug":"ellis-jones-new-inheritance-tax-rules-a-kick-in-the-teeth","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/864265\/","title":{"rendered":"Ellis Jones: New inheritance tax rules a &#8216;kick in the teeth&#8217;"},"content":{"rendered":"<p>\n  Under the changes, which take effect from April 6, 2027, unspent private pensions will be included in taxable estates and could be subject to the 40 per cent inheritance tax rate.\n<\/p>\n<p>\n  Previously, these funds could be passed on tax-free.\n<\/p>\n<p>\n  Malcolm Scott Walby, a consultant solicitor at Ellis Jones Solicitors in Dorchester, said: &#8220;The latest inheritance tax reforms are a kick in teeth for all of those people who have worked hard to build up their <a href=\"http:\/\/www.thisismoneyback.co.uk\/money.php?ref=au\" target=\"_blank\" rel=\"nofollow noopener\">pension<\/a> pots.\n<\/p>\n<p>\n  <img   width=\"100%\"\/>Malcom Scott Walby &#8211; Consultant solicitor at Ellis Jones Solicitors (Image: Deep South Media)\n<\/p>\n<p>\n  READ MORE: <a href=\"https:\/\/www.dorsetecho.co.uk\/news\/26481014.weather-forecast-dorset-upcoming-weekend\/?ref=ed_latest\" target=\"_blank\" rel=\"nofollow noopener\">Weather forecast for Dorset over upcoming weekend<\/a>\n<\/p>\n<p>\n  &#8220;It reverses years of guidance promoting pensions as a safe and prudent way to plan for the future, so people could be forgiven for feeling aggrieved.&#8221;\n<\/p>\n<p>\n  Mr Walby said the changes highlight the importance of early planning.\n<\/p>\n<p>\n  He said: &#8220;The new rules are going to affect a great deal of people, some who may already be rapidly changing their retirement planning before the changes come in.\n<\/p>\n<p>\n  &#8220;The key is to be proactive and take professional advice so that a strategy can be put in place.&#8221;\n<\/p>\n<p>\n  The revised rules are part of the Finance Act 2026 and introduce section 150A to the Inheritance Tax Act 1984.\n<\/p>\n<p>\n  This confirms that unused pension funds, now classed as \u2018notional pension property,\u2019 will count towards a person\u2019s estate for inheritance tax.\n<\/p>\n<p>\n  Inheritances above \u00a3325,000 are taxed at 40 per cent, with an additional \u00a3175,000 allowance available for those leaving a main residence to a direct descendant.\n<\/p>\n<p>\n  Some exemptions remain in place.\n<\/p>\n<p>\n  Spouse and civil partner allowances and joint life <a href=\"http:\/\/www.thisismoneyback.co.uk\/money.php?ref=au\" target=\"_blank\" rel=\"nofollow noopener\">annuities<\/a> will continue to be exempt from inheritance tax, allowing married couples and civil partners to shield up to \u00a31 million.\n<\/p>\n<p>\n  <img   width=\"100%\"\/>Chris Pemberton, partner at Ellis Jones Solicitors (Image: Deep South Media)\n<\/p>\n<p>\n  Chris Pemberton, partner in wills, trust and probate at Ellis Jones, said: &#8220;The legislation is extremely complex, which is why it is so important to take expert advice to mitigate the impact of inheritance tax on your estate.&#8221;\n<\/p>\n<p>\n  The Society of Pension Professionals has urged HMRC to address concerns about the new rules, warning that they could create confusion and delays for bereaved families.\n<\/p>\n<p>\n  Ellis Jones Solicitors\u2019 Dorchester office is located on Somerleigh Road.\n<\/p>\n<p>\n  Further information on inheritance tax and estate planning is available at the Ellis Jones website.<\/p>\n","protected":false},"excerpt":{"rendered":"Under the changes, which take effect from April 6, 2027, unspent private pensions will be included in taxable&hellip;\n","protected":false},"author":2,"featured_media":864266,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":["post-864265","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/864265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=864265"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/864265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/864266"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=864265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=864265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=864265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}