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  "path": "/money/inheritance-tax-warning-as-pension-rule-change",
  "publishedAt": "2026-03-24T09:10:04.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Major state pension overhaul next month as retirees 'may have to pay tax' on payments soon",
    "Rachel Reeves's pension power grab DEFEATED in major blow to Labour - but 'win for savers'",
    "TSB warning: Pensioners losing £4k to scam as criminals 'target older people's life savings'",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nA major shift in pension taxation is just over a year away, with changes set to bring unused defined contribution pension savings into the scope of inheritance tax.\n\nFrom next year, any unused money held in defined contribution pensions will be counted as part of an individual’s estate for inheritance tax purposes.\n\n###\n\n\n\n\nThe change is expected to draw more estates into the inheritance tax net, although the overall proportion of people affected is forecast to remain relatively small.\n\nThe reform means some families could face unexpected tax liabilities during bereavement if planning has not been undertaken in advance.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nInheritance tax becomes payable when an estate exceeds £325,000, known as the nil rate band.\n\nAn additional allowance, called the residence nil rate band, provides a further £175,000 when passing a home to children or grandchildren.\n\nMarried couples and civil partners can transfer assets to each other without incurring inheritance tax due to the spousal exemption.\n\nThey can also inherit any unused nil rate bands, meaning a surviving partner could pass on up to £1million without triggering inheritance tax.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nCohabiting couples are not eligible for the same exemptions under current rules.\n\nGifting assets is one method individuals may use to reduce the size of their estate ahead of the changes.\n\nThere is an annual gifting allowance of £3,000, which can be carried forward by one year if unused.\n\nLarger gifts, known as Potentially Exempt Transfers, fall outside the estate if the individual survives for seven years after making them.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Major state pension overhaul next month as retirees 'may have to pay tax' on payments soon\n  * Rachel Reeves's pension power grab DEFEATED in major blow to Labour - but 'win for savers'\n  * TSB warning: Pensioners losing £4k to scam as criminals 'target older people's life savings'\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nIf death occurs within that period, inheritance tax may still apply, although the rate can be reduced depending on timing.\n\nSpecific exemptions also apply to wedding gifts, with limits of £5,000 for a child, £2,500 for a grandchild and £1,000 for others.\n\nIndividuals may also give away surplus income without affecting their estate, provided the payments do not reduce their standard of living.\n\nCertain conditions apply to ensure gifts are not still considered part of the estate.\n\n###\n\n\n\n\n###\n\n\n\n\nFor example, assets given away but still used by the original owner, such as continuing to live in a gifted property without paying market rent, may be treated as a \"gift with reservation\" and remain subject to inheritance tax.\n\nMaintaining records of gifts, particularly those made from surplus income, is required to demonstrate compliance with the rules.\n\nProfessional advice may be sought to ensure estate planning aligns with current inheritance tax regulations.\n\n###\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Inheritance tax warning as pension rule change could leave families facing unexpected bills"
}