Using a pension to avoid IHT Charlotte Gifford in the Telegraph says pensions are “a powerful weapon in the fight against inheritance tax” as they are considered to be outside of a person’s estate for IHT purposes. She notes that a month before the end of the 2023 tax year, IHT receipts had already hit a record-high of £6.4bn. The Office for Budget Responsibility estimates that a freeze on IHT thresholds will rake in £45bn from bereaved families by 2028, with it forecasted that between now and then, a quarter of a million estates will be hit with the 40% charge. Ms Gifford says a simple way to avoid IHT is to give away your wealth during your lifetime. She also suggests that the Chancellor’s decision to remove the pension lifetime allowance could be an incentive for people to make additional contributions into their pension pot to save on IHT. Pension planning can be a great way for motorsport business owners to reduce their IHT exposure.