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The Financial Secretary to the Treasury (Lord Livermore) (Lab)

Speaking in the House of Lords on 17 November 2025

Debate

Inheritance Tax: Pensions

Contribution

My Lords, the Government continue to incentivise pension savings for their intended purpose of funding retirement. Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes made over the last decade, which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than to fund retirement.

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