Inheritance tax pension raid could put businesses at risk

Thousands of small and medium-sized businesses could face forced liquidation after pensions become subject to inheritance tax in two years’ time, because of a common retirement plan for entrepreneurs.

Chancellor Rachel Reeves announced in her first Budget last year that unspent pension assets would be included in inheritance tax calculations from April 2027. The reform currently dictates that the pension scheme must itself settle its share of the IHT bill.