How could the changes affect deferred members?
The UK Government has changed the inheritance tax treatment of some pension death benefits.
If you die on or after 6 April 2027, any death grant payable in respect of your deferred LGPS (NI) benefits may be included when calculating the value of your estate for Inheritance Tax purposes.
Whether any Inheritance Tax is payable will depend on the total value of your estate and the circumstances of the beneficiaries.
Are benefits paid to a spouse or civil partner affected?
Benefits paid to a surviving spouse or civil partner continue to be exempt from Inheritance Tax under the current legislation.
Should I review my estate planning arrangements?
Some members may wish to review their estate planning arrangements in light of the changes taking effect from 6 April 2027.
NILGOSC cannot provide financial or tax advice, and members should consider seeking independent financial advice if they are concerned about the impact of the changes on their personal circumstances.
Where can I find more information?
Further information is available from HM Revenue & Customs (HMRC) on the inheritance tax treatment of unused pension funds and pension death benefits from 6 April 2027.