How the Chancellor’s 2024 Autumn Statement affects your Scheme pension

Saturday 02 November 2024
In her first Budget as Chancellor under the new Labour Government, Rachel Reeves maintained the existing rules for taxing pensions payments. However, she made one significant change to how your pension saving may be taxed following your death.
Rachel Reeves Chancellor

If you die, a lump sum may be payable from our Scheme. This is normally paid directly to your loved-ones and does not form part of your estate. Currently, this lump sum is not liable to Inheritance Tax (IHT)

The Chancellor has proposed that from April 2027, these lump sum payments, will need to be included with your estate for IHT purposes – in other words, making the lump sum payment liable to IHT.

IHT can be complicated and if you believe your estate may exceed the thresholds where tax would be payable, please seek the advice of a qualified tax planner.

To find out more about IHT, visit gov.uk/inheritance-tax

The Chancellor also included within the Autumn Statement changes to the tax rules for those who are looking to transfer their pensions from UK pension arrangements to arrangements overseas.