Overview

• The policy ends the broad exemption for defined-contribution pension savings and applies inheritance tax of up to 40% even if the saver dies before reaching access age
• Official estimates project that bringing pensions into the IHT net will generate about £1.5bn annually by 2029-30 as frozen thresholds and asset inflation boost receipts
• Treasury officials are weighing tighter lifetime gifting rules, including a potential cap on tax-free transfers, ahead of the autumn Budget
• Industry bodies and analysts warn that typical homeowners could face six-figure IHT bills, with one calculation showing an £82,158 charge for a single homeowner with an average home and moderate pension pot
• Think tanks and advisers urge carve-outs for small pension pots, income-linked reliefs and protections for cohabiting couples and first-time buyers to address fairness concerns