Britons Face Fines Over Inheritance Tax on Pensions, Lords Warn

Bereaved British families risk being saddled with penal interest bills on unpaid inheritance tax as they struggle to raise the cash to cover new death duties on pension funds, UK lawmakers warned.

A report by members of the House of Lords found the government’s decision to bring unused pension funds into the inheritance tax net from next year will place a huge burden on executors who can’t raise the funds in time.

A six-month deadline for payment is “incompatible with the timescales on which existing pensions processes operate,” the Economic Affairs Finance Bill Sub-Committee said. “It cannot be right to ...