In the budget announcement on 30 October 2024, the Chancellor proposed to include unused pension funds as part of the Inheritance Tax (IHT) calculation. In anticipation of this, HMRC has initiated a technical consultation regarding the changes that will operate in practice from 6 April 2027. The consultation will run from 30 October 2024 – 22 January 2025.
The proposal is likely to affect active, deferred and pensioner scenarios, and we need to deepen our understanding of the potential implications. We will be in a position to provide further information on the impact to Armed Forces Pension Schemes once the consultation has concluded and the outcomes are known.
