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At Exchange Accountants, we are advising clients to review their inheritance planning following significant changes to the way pension savings are treated for inheritance tax (IHT).

Chancellor Rachel Reeves confirmed in the last autumn Budget that unspent pension pots will now form part of an individual’s estate for IHT purposes, regardless of age at death.

This is a major shift away from previous rules, where pensions could usually be passed on tax-free if the deceased was under 75.