Workers face inheritance tax sting if they die before minimum pension age
Rachel Reeves announced in her maiden Budget last October that pension pots would no longer be exempt from death duties from April 2027, making them subject to a levy of up to 40pc.
However, it was not clear whether inheritance tax would apply if someone dies before they turn 55 – the age at which they can access their pension.
HM Revenue & Customs (HMRC) has now confirmed that death duties will be levied even if a saver never had the opportunity to spend their retirement savings.
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