Inheritance tax changes — Autumn Budget 2024

It was announced in the Autumn Budget 2024 that, from April 2027, most lump sum death benefits from pension schemes (and any DC savings) will be included when calculating the value of your estate for inheritance tax purposes.  This is a major change, and a consultation is now running until January 2025.  However, this will only cover how the changes are implemented — the changes will definitely go ahead.  The Trustee and the Company will review the implications for the Fund and provide further information and guidance in the coming months.

There was also some good news – it was confirmed that the pensions ‘Triple Lock’ will be maintained for the duration of Parliament.  This means the Basic State Pension and New State Pension will be uprated by 4.1% for 2025/26, meaning you could receive up to an extra £470 a year.  The Pension Credit Standard Minimum Guarantee will also increase by 4.1% from April 2025.

Please note that inheritance tax is a complex area, and you may wish to speak to a financial adviser.  If you need any advice about decisions relating to your pension or retirement savings, you should consult an independent financial adviser.

Help choosing one can be found at www.fca.org.uk/firms/financial-services-register