HMRC released a technical note on 11th May explaining how the legislation regarding IHT & pensions will operate in practice for personal representatives, pension scheme administrators and beneficiaries, and outlines the proposed approach to information‑sharing and tax collection. It is essential reading.
It sets out:
- how notional pension property is identified, valued and allocated to beneficiaries
- who is responsible for reporting and paying any Inheritance Tax due
- the use of withholding notices and the pensions direct payment scheme
- how the reforms interact with existing Income Tax rules on pension death benefits
HMRC will continue to publish secondary legislation, guidance and supporting materials ahead of implementation in April 2027.
https://www.gov.uk/government/publications/inheritance-tax-on-pensions-technical-note
Stephen Parnham
