Ever since “tax-free cash” changed its official name to “pension commencement lump sum” back in 2006 there have been pre-Budget rumours that it was going to change – and not for the better.

At the end of July, we had confirmation that the Government is ploughing ahead with plans to include “unused” pension funds in a deceased’s estate for inheritance tax (IHT) purposes. 

There have been some fluctuations in recent years but overall divorce rates in the UK have been in decline since the 1990s.

Since the announcement that pensions are to be included in estates for inheritance tax (IHT) purposes the question of whether those with large pension pots should be giving some funds away has become increasingly common.