Inheritance tax (IHT) changes – an update

The IHT changes we told you about in our last newsletter are due to become law on 6 April 2027. These changes will not affect your SCPF death in service benefits or dependant’s pension.

However, unused Additional Voluntary Contributions (AVCs) will be included when calculating if IHT is owed on your estate. If your estate exceeds the IHT threshold, any beneficiaries may need to pay tax on the money you leave them.

If you believe you could be affected by this change to IHT rules, we recommend you speak to a financial adviser. You can find advisers in your area by going to www.vouchedfor.co.uk