Pensions, death and tax.

23 Jan 25 1 min read

Pensions, death and tax.

The treatment of pensions on death has come under the spotlight since the Autumn Budget, when the Government announced their intention to bring discretionary pension schemes into the scope of IHT from April 2027.

With pensions just another asset for IHT purposes, what if anything should we be thinking about when it comes to IHT planning? 

Les Cameron (Head of Technical, M&G)

In this session, he took a walk through the pension death benefit landscape – where we've been, where we are right now, and what the future may hold. 

110 minute video (incl 40 minutes Q&A)   I     Structured CPD accredited by CII and CISI 

Learning outcomes

By the end of this session, you will be able to:

  • Describe the tax treatment of pension schemes on death
  • Explain the key elements of creating an IHT plan
  • Evaluate potential solutions for individuals whose pensions may be caught up in the IHT net

Claiming your CPD

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below

1. When are pensions being included in the estate for IHT from?

        a. 6th April 2025

        b. 11th November 2024

        c. 22nd January 2025

        d. 6th April 2027

2. Which of the undernoted is TRUE?

        a. Pre 75 pensions are income tax free within the LSDBA

        b. All death benefits set up when the member died post 75 are taxable

        c. Some pension schemes are currenly subject to IHT

        d. Pre 75 pensions are tax free if set up within 2 years of the scheme being aware of the members death

3. What is the key consideration of the pensions and IHT consultation that concluded on 22nd January 2025?

       a. Whether pensions should be included in the estate or not

       b. What the scope of the change is going to be

       c. The processes for pension scheme admnstrators to pay any IHT liability

      d. How to avoid having pensions included in the estate

    

1. When are pensions being included in the estate for IHT from?

        a. 6th April 2025

        b. 11th November 2024 

        c. 22nd January 2025

        d. 6th April 2027

2. Which of the undernoted is TRUE?

        a. Pre 75 pensions are income tax free within the LSDBA

        b. All death benefits set up when the member died post 75 are taxable

        c. Some pension schemes are currenly subject to IHT

        d. Pre 75 pensions are tax free if set up within 2 years of the scheme being aware of the members death

3. What is the key consideration of the pensions and IHT consultation that concluded on 22nd January 2025?

       a. Whether pensions should be included in the estate or not

       b. What the scope of the change is going to be

       c. The processes for pension scheme admnstrators to pay any IHT liability

      d. How to avoid having pensions included in the estate

Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk

Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.

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