Written Question·Treasury·UIN 80049

Pension Funds: Taxation

Tabled: 10 October 2025
Answered: 15 October 2025

Question

Abtisam Mohamed

LabourSheffield Central

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing a flat 20% tax on defined contribution pension funds collected by pension providers at the point of death.

Answer

Dan Tomlinson
Most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes that have been made to pensions tax policy over the last de...

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