Key pension items from the Chancellor’s autumn statement 2024

The key things to note about pensions and related benefits are:

• Triple lock: this remains in place so the State Pension will keep going up each year by the highest of 2.5%, inflation or earnings growth. State Pension increases will be 4.1% from 6 April 2025.
• Inheritance tax: there’s a new proposal that, from April 2027, unused pension pots would form part of your estate and be subject to inheritance tax. Your beneficiaries would only pay inheritance tax if your estate is above £325,000 (possibly up to £500,000 if you’re leaving your home to a direct descendant). The Government is currently consulting on this proposal.
• Pension scheme administrators: administrators of registered pension schemes will need to be UK residents from 2026.
• Overseas transfers: pension transfers to a qualifying recognised overseas pension scheme established in the European Economic Area or Gibraltar will now face a 25% overseas tax charge. They had previously been excluded from this charge.