New tax rules might force you to completely change your pension plans

Rachel Reeves new tax plan targets pension funds with major inheritance-tax changes that could hit hard-working families pockets

The government wants to include defined-contribution pensions in death duties starting spring-27 (but theres still time to think before making quick decisions). The plan needs lots of work: pension managers executors and tax office must figure-out how to share info without breaking privacy rules

Technical problems keep showing up — like how to handle multiple pension funds and avoid over-taxing peoples money. The math shows combined income and inheritance taxes could eat up to 90% of savings; plus the rules dont account for tax money already in the pot

Here are some real-world options to think about:

• Look into buying an annuity since rates got better
• Consider setting-up family trusts
• Think about equity release options
• Make smart charity donations: they can cut tax rate from 40% to 36%

The changes hit farming communities extra hard — Mike Warburton shares his real-life example from Gloucestershire where only 1 dairy farm remains out of 4 that existed back in late-80s. The expected tax income from these changes: just £230m in 26-27 (which is tiny compared to other tax increases)

The Government must surely see the need to reconsider this policy