Inheritance Tax is paid on the 'estate' of someone that has died - this includes property, possessions and money - but the Chancellor has announced huge changes to how it works today

The tax, sometimes paid on the estate of someone who has died including property, possessions and money, is reserved to Westminster and applies to Scots.

Pensions will become liable for inheritance tax after Rachel Reeves announced a £2billion crackdown in her bombshell maiden Budget today.

Chancellor Ms Reeves said that the inheritance tax personal allowance threshold will be extended until 2030, and inherited pensions will now be included in inheritance tax.

Pensions will be included in the assets that count towards inheritance tax from April 2027, throwing family legacy plans into turmoil.

Money Saving Expert's Martin Lewis said the changes to Inheritance Tax is a "big change"

The Chancellor confirmed pension savings will now be included as part of the "estate" of someone who has died from April 2027 and will be subject to Inheritance Tax.

Only about four per cent of the population typically pay this duty upon passing on assets

Rachel Reeves today announced that pensions will be included within the value of estates for inheritance tax (IHT) purposes from April 2027.

Rachel Reeves has announced in her Autumn Budget statement that pensions passed on will be subject to inheritance tax (IHT) from 2027.

Rachel Reeves has today delivered her Autumn Budget - the first Labour Budget in 14 years - where she announced sweeping changes that will impact your pension and retirement pot

Jeremy Clarkson said farmers had been 'shafted' as he broke his silence on Labour's inheritance tax hike announced in the Budget on Wednesday.

The change was announced by the Chancellor in his Budget today, and will see pension savings included as part of the "estate" of someone who has died from April 2027

As well as supporting the NHS, the money raised through National insurance payments are also used to fund many benefits and the state pension