New data indicates that 153,000 UK households could be impacted by forthcoming tax changes. If you are IHT (Inheritance Tax) planning in Cheshire, it could be worth seeking professional advice from your local finance specialist to see if you are affected.
The Government’s decision to apply IHT to pensions was originally announced by the Chancellor of the Exchequer, Rachel Reeves, in last Autumn’s budget as part of the Government’s drive to bolster the public coffers. Following that announcement, it is scheduled to take effect from April 6, 2027.
Following a Freedom of Information request, data has been published by the OBR (Office for Budget Responsibility) showing that by 2030, some 31,200 additional estates will become liable for the tax in 2027-28, and again in 2029-30 until the close of the tax year.
In addition, a further 121,500 families already liable for IHT are due to see their bills rise. As a result, many estates with more modest assets or pension savings are in line to incur new or increased IHT liabilities. Experts have said the IHT net will impact those families caught between a frozen nil-rate band, rising house prices and inflationary pressures.
According to Senior Personal Finance Analyst, Myron Jobson, the Treasury’s decision to incorporate pensions in inheritance calculations will have an effect on people who had planned their futures around existing rules – particularly as pensions and the exemptions around them were traditionally seen as a tax-efficient strategy for passing down wealth.
