Julia Lopez MP has urged residents and businesses in Havering to have their say on the Government’s plans to introduce inheritance tax on pensions from April 2027 onwards.

Residents have until 22 January to share their views before the consultation closes.

In the Autumn Budget, the Chancellor announced that from April 2027 unused pension funds would be included in an individual’s estate for the purposes of calculating inheritance tax.

Currently the first £325,000 of someone’s estate is exempt from inheritance tax, hitting around 4.4% of estates in 2021/2022. Unused pensions are currently not included in the value of an individual’s estate but this will change from April 2027.

The changes will mean approximately 8% of estates will come within the threshold for paying inheritance tax, or around circa 50k families impacted costing them around £1.46bn by 2028/2029.

Commenting, Mrs Lopez said:

“I’m deeply concerned about the potential impact of the Chancellors changes to inheritance tax and pensions. It fundamentally undermines the pension planning of thousands of residents who saved diligently for their retirement and hoped to leave something behind for their relatives."

To find out more about the consultation head to - https://www.gov.uk/government/consultations/inheritance-tax-on-pensions-liability-reporting-and-payment/technical-consultation-inheritance-tax-on-pensions-liability-reporting-and-payment

To submit your response to the consultation you can do so either by email to [email protected]

Or in writing to: 

Assets, Residence and Valuation team 

HM Revenue and Customs 

100 Parliament Street 

London 

SW1A 2BQ