From April 2027, most unused pension funds and death benefits will fall within the scope of inheritance tax.
Mr King warned that these forthcoming IHT changes would have made breaches of the two-year deadline even more likely, particularly for estates involving multiple pension schemes or hard-to-sell assets.
“Since understanding the HMRC proposals, the pensions industry has lobbied hard for leniency when settling an estate containing pension assets,” he said.
“This Budget announcement will allow personal representatives sufficient time to distribute an estate in the most appropriate manner.”
Alex Pugh, chartered financial planner and partner at wealth management firm Saltus, noted that last week’s Budget offered little fresh detail on the April 2027 inheritance tax changes.
He urged families to seek clarity now, pointing out that a quarter of high net worth individuals were already exploring ways to shield their pensions from IHT, yet only 29 per cent had made beneficiary nominations.