To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, whether the (a) pension and (b) associated pension benefits under the tax-unregistered Judicial Pension Scheme will be liable for inheritance tax.
Answered on
10 January 2025
There are three different types of UK statutory defined benefit judicial pension schemes. As defined benefit schemes, none of these have a dedicated fund which can be inherited as defined contribution schemes do.
- Schemes established under the Judicial Pensions and Retirement Act 1993 (JUPRA) (unregistered). Any lump sum death benefits under JUPRA received after the member is no longer in service are already subject to Inheritance Tax.
- The New Judicial Pension Scheme (NJPS) (registered) established under the Judicial Pensions Regulations 2015. Any lump sum death benefits payable under the NJPS are already subject to Inheritance Tax.
- The Judicial Pension Scheme 2022 (JPS 2022) (unregistered) established under the Judicial Pensions Regulations 2022. Any lump sum death benefits payable under JPS 2022 are already subject to Inheritance Tax.
Dependant scheme pensions, including partner pensions, are not subject to Inheritance Tax. This is the same for registered and unregistered UK schemes, and will not be impacted by the changes announced at Autumn Budget 2024.
Answered by
Treasury