Pension pot withdrawals rise by 60 per cent as people fear an Inheritance Tax bill

Hartley Fowler Autumn Newsletter 2025: Tax Rises, Pensions and Policy Shifts - Merton Chamber of Commerce

This Autumn Newsletter from Hartley Fowler highlights major tax and policy developments shaping the months ahead. Key topics include proposed inheritance tax charges on unused pensions from 2027, the return of winter fuel payments with new tax implications, and changes to off-payroll working rules from April 2026. The update also covers reforms to R&D tax relief, a new UK-India trade and social security agreement, and HMRC’s revised stance on VA…

Pension pot withdrawals rise by 60 per cent as people fear an Inheritance Tax bill

In the last 12 months, there has been a 60 per cent rise in pension pot withdrawals. In total, over £18 billion in cash sums have been withdrawn by concerned pensioners and savers. This rise has likely been caused by the Inheritance Tax (IHT) announcements during the 2024 Autumn Budget, in which the Chancellor Rachel Reeves confirmed unused pension pots will be added to the value of an individual’s estate from 2027. This has prompted people to p…