Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 November 2024, to Question 12389 on Civil Servants and Ministers: Workplace Pensions, whether the automatic lump sum death benefits under the Civil Service Classic scheme is subject to inheritance tax.

As announced at Autumn Budget 2024, from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for Inheritance Tax purposes.

Some lump some death benefits from pension schemes are already within scope of Inheritance Tax. As with other registered schemes, lump sum death benefits under the Civil Service Classic scheme will be subject to Inheritance Tax from 6 April 2027.