(Image: WPA Pool, Getty Images)

A pensions expert has issued a stark warning that a significant new tax on pensions could cause considerable distress for families. Chancellor Rachel Reeves unveiled in the Autumn Budget 2024 that pensions would be subject to inheritance tax.

The hefty 40% tax applies to the total inherited assets you receive, above certain allowances. Therefore, if this was applied to an entire pension pot valued at £20,000, your successors would have to fork out £8,000 in tax to HMRC .

The Government has outlined that the new tax will be implemented from April 2027. However, a finance expert cautioned that there are several aspects of the policy that still need to be clarified.

Mark Plewes, head of Pensions Technical at WBR Group, stated: "The timetable is ambitiou

See Full Page