Budget 2024 and pensions

The October 2024 budget made changes to how pensions will be dealt within an estate and for inheritance tax purposes. Previously the vast majority of pensions were discretionary and as such passed outside of the estate and were not taken into account when calculating inheritance tax. 

From April 2027, that will no longer be the case and the value will form part of the estate. If the estate is over the inheritance tax threshold then tax will now need to be paid on this asset also. 

Contact us to discuss this further if your estate will be affected by the changes.