Chancellor's IHT plan adds to heartache

CRUEL TAX Reeves finds a way to make death worse

- Edited by HARVEY JONES

Chancellor Rachel Reeves's plan to slap inheritance tax on unused pensions risks turning death into a bureaucratic and financial nightmare for ordinary families.

That's the verdict of the House of Lords, which has warned that the policy is unworkable, unfair and cruelly timed.

In her maiden Budget in October 2024, Reeves announced that unused defined contribution pensions would be potentially liable for inheritance tax from April 2027. Until now, these pensions sat outside the system, allowing people to pass on what was left after a lifetime of saving.