Inheritance tax changes to impact pensions

Recent changes to personal taxes, including new pension and inheritance tax (IHT) rules, are a small part of a series of reforms from the government.

Although there seems to be a common perception that many will leave their financial plans unchanged, for whatever reason that may be, the new rules significantly change the financial planning landscape.

If the changes go ahead as planned, from April 2027, unused pension funds will be included in the value of an estate for inheritance tax purposes, potentially subjecting them to a 40 per cent tax rate.

However, there is always a possibility of adjustments based on further
consultations and feedback.

This would mean it’s vital for financial advice to extend way beyond pensions and encompass a broader range of financial matters, incorporating wider family finances.

The shift highlights the importance of obtaining advice that is proactive, comprehensive and easy to understand.

The changes mean it is also important to seek financial planning advice from an adviser with extensive tax knowledge to help you navigate the complexities of the new tax environment and ensure your plans remain
up-to-date and as effective as they can be.

At PM+M, our financial planning advisers work alongside our specialist private client tax team to ensure we are always helping you achieve
more from your finances.

Get in touch today to discuss how the changes could impact your
financial plans and any changes you may need to consider to
ensure your plans remain the most sensible and efficient for your individual circumstances.