Consultation on Inheritance tax and Pensions

On 30 October, HMRC launched a technical consultation, Inheritance Tax on pensions: liability, reporting and payment. This consultation follows the announcement at the Autumn Budget that measures will be introduced to bring most unused pension funds and death benefits within the value of a person’s estate for Inheritance Tax purposes from 6 April 2027.

This consultation is about the technical details of the changes and how the any additional Inheritance Tax will be calculated, reported and paid. The current proposal is that pension scheme administrators will become liable for reporting and paying any Inheritance Tax due on unused pension funds and death benefits, following correspondence with the personal representatives. 

The ATT will be responding to the consultation by the deadline date of 22 January, and we would love to hear your views. If you have any comments in relation to the consultation then please do contact us.