Labour's Tax Reforms to Hit Unmarried Couples and Wealthy Estates

New inheritance tax rules will significantly impact pension savings and capital gains for unmarried partners and affluent families.

Unmarried couples will face a 40% inheritance tax on inherited pension savings starting in 2027, potentially reducing retirement income.
The new tax rules will also impose capital gains tax on asset transfers between unmarried partners, unlike married couples who are exempt.
Wealthy families could see up to a 70.5% tax on inherited pensions due to combined inheritance and income tax liabilities.
The changes aim to prevent pensions from being used as inheritance tax planning tools, affecting about 8% of estates annually.
Experts advise individuals to seek financial advice and consider adjusting retirement and estate planning strategies.