UK to tax unused pension pots from 2027, potentially costing estates up to £80,000 in taxes.

Chancellor Rachel Reeves announced in the Autumn Budget that unused pension pots will be subject to inheritance tax starting in April 2027, with estates potentially facing charges of up to 40%. This change could result in families paying over £80,000 in taxes on average, according to analysis. The move is part of efforts to address a £50bn deficit in public finances, and has sparked concerns about increased complexity in estate planning and potential impacts on savings incentives.