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HMRC could bill state pensioners on their pension savings at a rate of an eye-watering and jaw-dropping 87 per cent. Retirees are being urged to "spend pension savings first" - or risk a staggeringly high 87 per cent tax bill.

IHT changes under the Labour Party government and HMRC reforms over how it is levied could see thousands of families hit with massive bills as pensions are brought into the tax net for the first time.

And Department for Work and Pensions, DWP , state pensioners could face a huge 87 per cent tax bill on their pension savings when new inheritance tax rules come in from April 2027.

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The shake-up from the taxman means unspent defined contribution pensions will be included in

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