Pension warning to check what you have written on key document as new tax looms

The Government says the changes will 'remove distortions' in the system

Families have been urged to plan ahead as a major new tax on pensions is coming in soon. Chancellor Rachel Reeves announced at last year's Autumn Budget a major expansion of inheritance tax, so the levy will soon apply to pensions. The exact details of how this will work have yet to be confirmed.

A previous Government consultation on the plans provided an outline of what the changes will mean. The document explains: "Most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes and pension scheme administrators will become liable for reporting and paying any inheritance tax due on pensions to HMRC." Chris Ball, CEO of financial advisory firm