Wide reaching changes will be made, ranging from DB surplus, superfunds and a proposed Virgin Media remedy, through to DC VFM, automatic consolidation, “megafunds” and new retirement solutions. But, with most of the detail to follow in regulations, some proposals will be a relatively slow burn.
Death benefits and “unused DC pots” to become subject to IHT
The Government is pressing ahead with its proposal to include most unused pension funds and death benefits in the value of a person’s estate for inheritance tax purposes from 6 April 2027. But all death in service benefits will be excluded. HMRC will provide guidance to help the industry prepare for the change.
New rules for unconnected multi‑employer CDC come into force from 31 July 2026, with TPR’s revised code of practice due at the same time. Meanwhile, the DWP has recently consulted on decumulation‑only CDC, opening the door for DC savers to move into a CDC scheme at retirement. Together, these developments mean that CDC is moving into its next phase.
Introduction The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the Regulations”) came into force on...
