A £500,000 pension inherited from someone who died after 75 could face up to 45% income tax, depending on the beneficiary’s tax bracket, and 40% inheritance tax on the remaining amount.

According to new analysis by Quilter, just two per cent of estates subject to inheritance tax (IHT) are currently taking advantage of surplus income gifting to reduce their tax liabilities. Based ...

Inheritance tax can eat into the savings you want to pass on to loved ones after you’re gone. What was once a problem only for the rich, now a growing number of families face paying the eye ...

Beneficiaries administering an estate also risk fines if they fail to pay inheritance tax by the six-month deadline. Ms Reeves raised HMRC’s late payment interest charges from 7.5pc to 9pc in April.

The UK tax system allows people to use their pension pots to avoid inheritance tax and should be changed to allow the government to collect more tax, a think tank has said.