We call on the UK Government to review current inheritance tax rules in the context of ongoing pension reform and the challenges facing working-age people today. We propose that individuals should be able to invest their full inheritance into a pension fund without incurring inheritance tax.

With people living longer and the cost of living at record highs, many individuals are struggling to save adequately for retirement. At the same time, inheritances, often built through a lifetime of taxed income and asset growth, are subject to further taxation upon transfer. We think this future facing reform would promote long-term saving and intergenerational investment and encourage greater financial independence reducing pressure on the state pension system.