Dentons Inform Newsletter - Special Edition

In our special edition of the Inform newsletter - we have covered HM Revenue & Custom's (HMRC's) response to the
Consultation Paper.

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Commentary from Dentons

It has been interesting to see some of the initial reaction by some industry commentators, who appear to be unhappy with the Government’s response. However, the Government has clearly listened to feedback and revised its proposals for the mechanics of bringing pensions within scope of IHT (whilst rejecting some suggestions with an explanation of why it has done so).

Of course, in an ideal world, bringing pensions into IHT would not be happening, but it is happening – and HMRC was clear on this in the original consultation.

There is clearly still a lot to come in terms of finer and final detail, but, in the meantime, any scheme members who have sound (but perhaps illiquid) scheme investments may also be relieved that they may not have to consider disposing of these in order to create liquidity to settle a pension-related IHT bill from 6 April 2027. As ever, we strongly recommend that pension scheme members could benefit from taking professional financial advice and this latest development reinforces this, given the new range of options which will exist.

If you have any questions about this, please speak to your regulated financial adviser (if you have one) in the first instance, or your dedicated Dentons’ Pension Administrator or Pension Consultant. Please note that Dentons can provide
you with factual information only.

Download the special edition of the Inform Newsletter.