Comment and Blogs
From a pensions point of view the biggest news from the Budget was undoubtedly the fact that from 6 April 2027, pensions will fall into the deceased’s estate and therefore be liable for inheritance tax.
Read more: Lisa Webster: A thorny question of pensions and IHT
As the year draws to a close it seems appropriate to keep with tradition and reflect on what has happened in a defining year for pension tax rules.
Read more: Lisa Webster: 2024 – a tumultuous year in pensions
As you will be well aware, from 6 April 2027 HMRC plan to include pensions in the deceased’s estate when it comes to assessing the value for inheritance tax.
The lifetime allowance may have been consigned to the annals of history but the various forms of protection are still relevant in the new world, especially when it comes to the amount of pension commencement lump sum (PCLS) that can be taken.
Read more: Lisa Webster: Divorce impact on lump sums raises question
HMRC’s January pension schemes newsletter announced changes to tax codes for pensions, and a few headlines followed proclaiming HMRC had finally fixed the over-taxation issue. It would be fantastic if that was the case, but despite nearly 10 years of getting it wrong, the problem isn’t resolved yet.
Read more: Lisa Webster: Over-taxation of pensions remains an issue
While 2024 ended with a lot of doom and gloom in the pension world following the big announcement on inheritance tax (IHT), there was some good news that may have slipped under the radar of some advisers.