How do pensions play into the inheritance tax calculation?published at 17:12 Greenwich Mean Time 30 October
Kevin Peachey
Cost of living correspondent
Neil Gilbourne, 67, from Lincoln, asks: How have pensions been brought into the inheritance tax calculation?
Inheritance tax is paid if an estate is valued at more than £325,000, but currently any money saved in a pension does not count towards this.
Anyone who dies before the age of 75 can usually pass on what is left of their pension savings tax-free as a lump sum, or an income.
If they are 75 or older when they die, their pension money can still be passed on, but it is treated as income and the person they leave it to may have to pay income tax.
However, from April 2027, pension pots that are inherited will be part of the tax calculation, potentially bringing more estates into the net.