Families Could Face 91% Tax Hit on Inherited Pensions From April, NFU Mutual Warns

Pensions face 'triple tax blow' as HMRC eyes 93% charge on retirement savings

Thousands of families in certain parts of the UK are at risk of being exposed to a tax raid on pensions charged at a rate of 93 per cent, analysts warn.Households face losing as much as 91 per cent of inherited pension savings to tax when unspent retirement funds are drawn into the inheritance tax (IHT) system from April 2027, according to fresh analysis by NFU Mutual.In Scotland, where a separate income tax regime applies, the effective rate cl…

Deadline alert as families could face a 91% tax hit

Some estates could suffer an effective tax hit of more than 90%

Families could face 91% tax hit on inherited pensions from April, NFU Mutual warns

Changes to inheritance tax rules could mean some families will see 91% of inherited pensions being swallowed up by tax due to a triple tax hit, NFU Mutual has warned. Unspent pensions currently sit outside the IHT net so if an individual dies under the age of 75 their beneficiaries do not pay income tax when taking money out. However, this will change from next April when unspent pension pots are included within IHT calculations. The existing £3…