In a move described as ‘extremely unfair’, the government has confirmed that inheritance tax (IHT) will apply to pension pots of those who die before they were able to access them.
In Treasury consultations, the government has not mentioned what bringing pensions into the scope of IHT in 2027 will mean if a member dies before they can access their pension pot, ie before they reach 55.
A spokesperson for HM Revenue & Customs (HMRC) told Citywire New Model Adviser that ‘IHT would still apply in this instance’, adding ‘there is no link to age for this measure’.