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Grieving families could be forced into costly loans to pay inheritance tax on pensions under Labour's April 2027 shake-up

Grieving families could be forced into costly loans to pay inheritance tax on pensions under Labour's April 2027 shake-up

HMRC levies interest at 7.75 per cent on inheritance tax outstanding beyond six months. On a £100,000 bill, a further six-month delay would add close to £4,000. Jo Summers, of the Society of Trust and Estate Practitioners, warns that pension payouts can take as long as two years to reach beneficiaries. The policy, set to take effect in April 2027, passes to Andy Burnham and his Chancellor, John Healey, from Sir Keir Starmer.

Inheritance tax must typically be settled before probate is granted, yet probate is what releases the estate's assets.

Tory pensions spokesman Peter Bedford says families 'should not be forced into high-interest debt'.

Trust lawyers have written to Treasury minister James Murray calling for the legislation to be corrected before 2027.

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