Autumn budget update
The 2024 Autumn Budget introduced significant changes to how pension death benefits will be taxed. Under the new rules, most unused pension death benefits will now form part of your estate for inheritance tax (IHT) calculations. These changes are due to take effect from 6 April 2027.
With this shift, many retirees may need to reassess their IHT strategies and make informed decisions. Expert inheritance tax advice can provide you with the clarity and options you need. Your adviser will guide you through the available choices, helping you plan ahead with confidence.
What does this mean for me?
It's important to note that the changes being proposed are still under consideration, so may change. Here is a breakdown of what is being proposed:
- Those managing the estate will need to use the HM Revenue and Customs (HMRC) calculator, to determine whether any inheritance tax (IHT) is due and how much of the nil rate band applies to the pension.
-
Estate administrators will pass this onto the pension provider, who then be able to calculate the IHT due on the pension. They will pay the required tax directly to HMRC before distributing the remaining death benefits to the beneficiaries.
-
If the pension is paid to a spouse or civil partner, it will be exempt from IHT due to the IHT exemption for spouses.
With these changes approaching, now is the perfect time to review how you're incorporating pensions into your retirement and estate planning.
Our simple process
Enter your location
We only work with Financial Conduct Authority (FCA) regulated financial advisers and firms in the UK to help you get support, wherever you’re based.
Tell us what you need
Let us know what kind of financial advice you’re looking for, so we can match you to an adviser with specialist skills best suited to your needs.
Tell us who you are
Simply provide your name, email address, and telephone number so that your adviser can get in touch and begin to help you. This usually happens within 24 hours.
Get advice to protect your wealth
Inheritance tax advisers can offer valuable insight and guidance to help you plan for your future.
-
Investments, savings and estate planning
Meet your future plans head on with expert inheritance tax advice. Your adviser will be able to you through the proposed changes and the impact it may have for you and your loved ones. -
Pensions and retirement income advice
Comparing pension plans and minimising charges to help you get the highest retirement income based upon your circumstance. -
Insurance and protection
Ensure your finances are secure with advice from expert advisers who will ensure your funds are kept safe. -
Business advice and general financial planning
Financial planning, investment strategies, risk management, tax efficiency, funding, and long-term growth to help you achieve stability and success.
Why choose Local Financial Advice?
We carry out regular checks and reviews on the advisers we work with to ensure we connect you with an FCA-regulated expert. When you use our service to connect to an adviser in your area, you will receive:
- A free, no-obligation initial consultation
Discuss your goals with your adviser. - The option of impartial, personally tailored advice
All advisers are carefully selected, FCA-regulated experts. - The opportunity to match with a different adviser
If you're not completely happy with the service you receive from your adviser, we'll happily find you an alternative.
Connect with confidence
We keep your data safe. Your information is encrypted and secure
We only work with FCA-regulated financial advice professionals
