{"id":21375,"date":"2025-08-28T10:39:03","date_gmt":"2025-08-28T09:39:03","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/partners-blog\/?p=21375"},"modified":"2025-08-28T09:39:19","modified_gmt":"2025-08-28T09:39:19","slug":"pension-pots-are-still-set-to-be-raided-by-the-government","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/partners-blog\/pension-pots-are-still-set-to-be-raided-by-the-government\/","title":{"rendered":"Pension pots are still set to be raided by the Government"},"content":{"rendered":"

By Craig Reid, Partner<\/em><\/p>\n

Despite some concern and protest, the Government has recommitted its intention to make unspent pension pots a part of a person\u2019s estate for Inheritance Tax (IHT) calculation.<\/p>\n

The change is still set to come into force from 6 April 2027, and will have a profound impact on the way that people structure their finances.<\/p>\n

If you have been saving into a pension pot for years, you might now be worried that your family will miss out.<\/p>\n

We are going to look at the proposals and see how you can handle the changes to protect your family.<\/p>\n

How will pensions now be impacted by Inheritance Tax?<\/strong><\/h3>\n

Your pension savings have long lived in a vault outside your estate and have been fully exempt from IHT.<\/p>\n

This has meant that pensions were a good way to have tax-efficient savings that could pass to loved ones untouched.<\/p>\n

That exemption made pension planning a cornerstone of efficient wealth transfer, resulting in many people forgoing pay rises and putting the money into pensions instead.<\/p>\n

The dream of pension points turned sour with the 2024 Autumn Budget<\/a> announcing that any \u201cunused\u201d pension funds, even death in service benefits, would be added to your estate value.<\/p>\n

Most troubling is that the burden of handling the IHT admin falls to personal representatives, or executors.<\/p>\n

These are often grieving family members who are not likely in the best headspace to deal with tax filings while mourning their loss.<\/p>\n

However, they will have to work within a tight six-month deadline to avoid facing penalties and fines.<\/p>\n

This was why the move faced considerable backlash, yet the Government has declared it will press on regardless<\/a>.<\/p>\n

How will the changes impact my family?<\/strong><\/h3>\n

It is estimated that 10,500 estates that previously paid no IHT will become liable under these new provisions.<\/p>\n

Alongside this, a further 38,500 estates will see higher bills as the changes will add roughly \u00a334,000, on average, to their liability.<\/p>\n

As many as 213,000 estates could contain pension wealth subject to tax, and the government expects to raise around \u00a31.5\u202fbillion annually by 2030.<\/a><\/p>\n

It is entirely possible that you are now facing down the threat of an IHT bill where once it might not have affected you.<\/p>\n

The changes to pension considerations are only one part of the tapestry of IHT reform that serves to pull more and more people into the firing line.<\/p>\n

There had been some hope that pension providers could have dealt with IHT on behalf of bereaved families, but this seems not to be the route the Government is pursuing.<\/p>\n

As such, it may be time to rethink your investment strategy to spare your family the additional challenge of navigating IHT filings.<\/p>\n

We are on hand to help you and your family understand the changes and mitigate as much of the impact as possible.<\/p>\n

There is still time to address where your money resides ahead of the implementation of the policy in 2027.<\/p>\n

Your money should help you and your family, and we can help make sure that you retain control over your financial future.<\/p>\n

Take back control of your family\u2019s finances. <\/strong>Speak to our team today<\/strong><\/a>!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By Craig Reid, Partner Despite some concern and protest, the Government has recommitted its intention to make unspent pension pots … Pension pots are still set to be raided by the Government<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,27,11,24,37,38],"tags":[],"class_list":["post-21375","post","type-post","status-publish","format-standard","hentry","category-blog","category-business","category-craig-reid","category-inheritance","category-pension","category-pensions"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/comments?post=21375"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21375\/revisions"}],"predecessor-version":[{"id":21376,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21375\/revisions\/21376"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/media?parent=21375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/categories?post=21375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/tags?post=21375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}