Governments will raid pension pots in April 2027 by subjecting them to a 40% Inheritance Tax charge on death. This overturns decades of policy and break the promise made to savers.

A pension should never be hit with IHT. The deal has always been simple: the money is taxed as income when it's taken out. That deal must extend to your beneficiaries. When they inherit your pension, they pay their rate of income tax on whatever they choose to withdraw. The taxman always gets his share, but only once.

Our proposal is to lock in this rule forever. No IHT on pensions, ever. However if the lump sum has not been excised before death, it is lost and not carried forward. The full amount of the Pension is taxed via Income Tax when drawn, even if recipient is outside UK, which can be done as soon as probate granted. It's a simple, fair system that needs permanent protection.