Inheritance Tax Budget 2024 Pensions. While a majority of people. Payments made on the death of a member to a beneficiary by a discretionary occupational pension schemes are, currently, free of inheritance tax.

Under the proposed change, assuming all allowances have already been used, the pension would be passed on to their beneficiary with a 40% inheritance tax charge on it. Changes to inheritance tax (iht) reliefs and exemptions are among the most controversial changes in rachel reeves’ first budget.