Grandparents might consider using tax reliefs to help future generations, suggests Richard Curtis.
A little under a year ago, Rachel Reeves, the Chancellor of the Exchequer, announced plans to remove the inheritance tax (IHT) relief on unused pension funds when a taxpayer died after the age of 75. Reeves said that the aim was to “restore the principle that pensions should not be a vehicle for the accumulation of capital sums for the purposes of inheritance, as was the case prior to the 2015 pension reforms”.
On 21 July 2025, the government published the draft legislation to put this into effect and, subject to parliamentary approval, IHT will become chargeable on these funds from 6 April 2026.
Once upon a time…
Historically, pension funds – contributions to which attracted income tax relief along with valuable tax relief on the
