Key Takeaways
- Andy Burnham has previously backed changes to IHT that would increase tax on larger estates.
- Chancellor John Healey could consider replacing IHT with a social care levy.
- From April 2027, unused pension savings are due to fall within the IHT regime and could face tax at 40%.
With further IHT changes already planned for April 2027, attention is turning to whether the government could use the 28 October Budget to reform, simplify or replace the current system.
Around 5% of estates currently pay IHT, but changes could broaden the number of estates affected as the government looks to raise additional revenue.
Advisers and pension providers are preparing for the 2027 reforms, which could bring unspent pension pots into the IHT net and potentially expose them to the 40% tax charge.