Andrew Tully, of Nucleus, said: “This is a massive shift in the way people think about pensions and passing on their unused wealth to family.

“Many may now wish to withdraw more from their pensions in the basic tax bracket of the income tax rate and spend, gift or shelter the income taken out. »

Businesses and landowners will also be affected inheritance tax. Agricultural and commercial properties will still receive some relief, but this will be capped at £1 million.

After this, 50% relief will still apply and inheritance tax will be levied on the remainder. This means a property worth £1.5 million would now incur £100,000 in inheritance tax.

Christopher Groves, of law firm Withers, said: “Business and farming families have suffered a kick in the teeth and would now have to hand over 20% of the businesses they built to the taxman in the event of death. »

Neil Davy, of Family Business UK, said: “These changes are a betrayal of Britain’s hard-working family business owners and farmers, which will lead to the closure, sale of valuable businesses and loss of income. jobs across the country. »

Ms Reeves also confirmed that inheritance tax thresholds would remain frozen for another two years, until 2030.

There has always been ways to avoid inheritance taxin particular by donating money at least seven years before death.

The raid on private pensions is particularly brutal. Since 2015, savvy savers have been filling their retirement accounts because unspent money can in many cases be passed on entirely tax-free. But the abolition of the lifetime pension cap means this particular loophole has become too big. Savers could stop contributing to a pension straight away, if you were doing so just to avoid inheritance tax.

As for the money you’ve already hidden, the choice is grim. Take it out and pay 40 or 45 percent income tax now – or 40 percent in inheritance tax once you’re gone.

Frozen tax thresholds

The Chancellor confirmed that deep freeze of income tax thresholds will continue until 2028, according to plans adopted from the conservatives. After that, she said the thresholds would increase in line with inflation.

Maintaining the thresholds is known as a “fiscal drag” as people see more of their pay rises disappear into Treasury coffers.

Between 2010-11 and 2019-20, the tax-free allowance increased by £6,025, from £6,475 to £12,500. Between 2020-21 and 2027-28 it will have increased by just £70.

Ms Reeves also confirmed that inheritance tax thresholds would remain frozen for another two years, until 2030.

Even if it means going without income today, you can use pension contributions and “salary sacrifice” plans to reduce your tax bill. Read our step-by-step guide on how to proceed.

Stamp duty

Liz Truss-era £2bn project to cut stamp duty was one of the few changes retained by Rishi Sunak as Prime Minister.

The move increased the nil rate threshold at which unpopular fees became due to £250,000, or £425,000 for first-time buyers.

However, this ends in March and Ms Reeves has decided not to extend it as she benefits from house sales. This means the thresholds will be reduced to £125,000 and £300,000.