Autumn Budget 2024: Pensions subject to Inheritance Tax from April 2027 – but most still won't pay

Flure

I am in receipt of monthly income from a Final Salary scheme. For the purpose of IHT, how would the value of the “pot” be calculated?

Albermarle

Flure said:

I am in receipt of monthly income from a Final Salary scheme. For the purpose of IHT, how would the value of the “pot” be calculated?

It would not because there is nothing to pass on when you die.
OK there will probably be a reduced pension for your spouse, but there is no IHT payable on any assets passing to a spouse anyway and then when they die that is the end for that pension.

FIREDreamer

I am in receipt of monthly income from an annuity with a 20 year guarantee period. For the purpose of IHT, how would the value of the “pot” be calculated assuming my spouse dies first and so won’t benefit from the remainder of the guarantee period after I croak?

SVaz

I imagine that it’s the period left of the guarantee x the yearly payment.
So 10 years x £10k for example.