Pensions are currently exempt from IHT and not classed as part of an estate when someone passes away.
“We will close the loophole created by the previous government, made even bigger when the lifetime allowance was abolished, by bringing inherited pensions into inheritance tax from April 2027,” Reeves said.
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Pension death benefit rules mean there is no tax to pay for any recipient if the member dies before the age of 75.
If death occurs before age 75 then no tax applies, and if after age 75 then the beneficiary p…
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