What do HMRC’s draft rules mean for family businesses?

During last year’s Budget, the Chancellor revealed that most DC pension death benefits will be subject to inheritance tax (IHT) from April 2027. Pensions have long been used as IHT-efficient vehicles for wealth transfer but will refocus on retirement savings. New draft rules by HMRC have highlighted the need for individuals to reassess their wealth planning. Business Relief will not receive any reductions, meaning assets like Alternative Investment Market portfolios within pension funds will face IHT charges. Business assets held within pension wrappers will be valued in full, too, excluding...