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 amid a £2billion crackdown announced by Rachel Reeves during her bombshell maiden Budget today.

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

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

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

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.

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

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