Rachel Reeves has faced embarrassment after numerous UK households managed to avoid inheritance tax from HMRC. Sales of annuities surged by 20 percent in 2024 to reach £7 billion, leaving the Labour Party Chancellor humiliated, reported the Birmingham Live.
Pete Cowell, head of annuities at Standard Life, part of Phoenix Group, noted that more Brits were opting to access their pensions early following changes to inheritance tax announced in October’s Budget. He said, “We anticipate demand for annuities will remain strong, particularly with changes from the October Budget bringing pensions into scope for inheritance tax from 2027. The change is likely to encourage wealthier savers to access more of their pensions and annuities are proving an attractive way of doing so.”
