Pensioners hit with £100,000 tax bills in rush to avoid Labour's death levies

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Pensioners hit with £100,000 tax bills in rush to avoid Labour's death levies.

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Hundreds of pensioners have been hit with tax bills of more than £100,000 after cashing in their retirement savings in an effort to avoid Labour's so-called "pensions death tax".The increase in large pension withdrawals followed Chancellor Rachel Reeves's announcement that unused pension wealth would become subject to inheritance tax from April 2027.Between October 2024 and March 2025, almost 400 people withdrew pension pots worth £250,000 or more.Each of those savers faced a minimum income tax bill of £98,700, according to analysis of Financial Conduct Authority data by Standard Life.

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TRENDING Stories Videos Your Say The number of people making withdrawals of that size was around a third higher than during the same six-month period a year earlier, before the inheritance tax changes were announced.An additional 1,772 people fully withdrew pension pots worth between £100,000 and £249,999 during the same period.Those savers each faced tax bills of at least £27,400.Standard Life...

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