Families could be stung with extra tax that eats as much as 91 per cent of inherited pensions from April, new figures for Wealth & Personal Finance reveal.
A tax ‘blind spot’ means bereaved families could be stripped of hundreds of thousands of pounds more from inheritances, according to calculations by financial services company NFU Mutual.
The tax trap will kick in when unspent pension pots start to be considered as part of your estate for inheritance tax purposes from April 2027.
Former Chancellor Rachel Reeves announced the raid in October 2024 but failed to act on a clash between inheritance and income
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