The government has confirmed via a parliamentary question that, from 6 April 2027, unused pension funds and notional death benefits will fall within the general component of a deceased's estate for the purposes of calculating whether they have left more than 10% of their net estate to charity.
This provides clarification on the way in which the recent Finance Act 2026 changes to the inheritance tax treatment of unused pension funds and lump sum benefits will interact with the existing inheritance tax reduced rate of 36% for charitable testators.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
