More details on how the Marxist Labour government of the UK intends to impose a tax on “unused” wealth in personal pension funds - what next?

“Pension changes: From 6 April 2027, most unused pension funds and death benefits will be included within the value of a person’s estate and may be subject to IHT at 40%.”

Before this, the same 40% applied to the estate above 435,000 pounds. New, there is no relief.

This is not the end of the tax grab. From the estates of those with money left over. Who will also have to pay a 40-45% tax on the windfall passed to them.

Beneficiaries will also be subject to tax at their marginal tax rates – as they are now,

· Basic rate: 20% (for income up to £50,270)

· Higher rate: 40% (for income between £50,271 and £125,140)

· Additional rate: 45% (for income above £125,140)

Most beneficiaries will already be in the middle band, but a benefit from an estate will likely boost them into the 45% bracket.

So, imagine an estate worth 500,000 pounds paid to two children – Perhaps the house is worth 300,000 pounds and cash/other assets worth 200,000 pounds.

Prior to the changes coming up in a few years, the inheritance tax would have been 500,000 -325,000 current relief = 175.000 taxed at 40% = a tax bill of 70,000 to be taken from the estate and passed to beneficiaries.

Starting from 2027, the estate will be charged with 500,000 @ 40% = 200,000 pounds of inheritance tax (and the beneficiaries will likely pay 40-45% tax on the value of the house – that is not cash - and will have to be sold).

An increase from 70,000 to 200,000 pounds.

Death and taxes – use it or lose it to the Marxists.

Here’s a letter send to the UK Chancellor of the Exchequer – “Rachel from Accounts” taken from here:

Pensioner's brutal letter to Rachel Reeves accuses Labour of ‘stealing retirement'

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Chancellor of the Exchequer, Rachel Reeves, addresses delegates during the Great Northern Conference 2024© Getty

Rachel Reeves has been accused of stealing a pensioner's life-long plan for a happy retirement.

The consequences of the Chancellor's "dreadful" move to charge Inheritance Tax (IHT) on pension pots passed on after death have been detailed in a letter written by a retired scientist who "planned and saved wisely" for their retirement.

Under the Budget changes, pension funds passed on to loved ones after death will be treated as part of the deceased person's estate for IHT purposes and subject to the standard 40% tax rate above the £325,000 nil-rate band.

It is expected the Chancellor's Budget proposals will apply to defined contribution pensions, which have been the most common pension type.

In a letter published by the Telegraph, the Leicester-born pensioner, 69, describes studying hard at school, being the first in their family to go to university and reaping the rewards of a "long and successful" career in science.

The writer says they retired aged 60 as they felt "worn out" by a demanding job, but "content" they had "planned and saved wisely" for the kind of retirement their parents never had.

Before the Budget, the pensioner says they would have paid £200,000 in IHT, but that has now shot up to £640,000, which they describe as "gut-wrenchingly unjust".

To pile more misery on top of that, the writer explains how their children could face having to pay £360,000 income tax on the balance they inherit.

Mitigating against Ms Reeves' IHT changes mean they should draw down money they don't need only to spend it, sell their family home or give it to their children or emigrate "to save a fortune".

The letter writer goes on to outline a "sinister" threat hidden in the Chancellor's personal pension funds raid where dying before April 2027 would make their pension worth £800,000 more, as the changes would not apply.

If they died before April 2030, it would mean paying £440,000 IHT but leaving a pension pot worth £360,000 more because their children would not have to pay income tax on it.

But should they die after 75, then 40% would be lost in IHT along with 55% in income tax when the balance is drawn down, according to the writer of the letter.

They go on to say the state has "already taken its pound of flesh" after a lifetime of their paying taxes.

The writer adds: "Nonetheless, until your Budget, it had all been worthwhile; I'd enjoy my retirement and leave a legacy for my family, something my parents couldn't do.

"But that has been stolen by a Budget that effectively punishes people for following the rules of working hard and saving diligently for retirement so that the state does not have to spend a penny to support them - someone who's self-sufficient, to the very end."

To a Marxist, all property and wealth is theft from the State.

To me, all taxation is theft, and the thieves are the kakistocrats in government who have brainless, regressive ideas that th

rottle the chance to improve living standards and the quality of life and health.

Onwards!!!

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