A working-age single homeowner in England with an average-priced home of £290,395 and a moderate pension pot of £415,000 could face an IHT bill of £82,158, according to calculations from Quilter.
IHT is charged at a rate of 40 per cent on assets above the £325,000 nil-rate band, with an additional £175,000 allowance if the main residence is passed to direct descendants.
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Reeves’s changes will impose up to 40 per cent IHT on unspent private pension pots, expected to raise about £1.5bn annually for the Treasury by 2029-30.
The amount of tax charged to those inheriting money from people who have already accessed their pension pots before death will be lower, as the pots they inherit will be smaller.
Many cohabiting couples jointly own their property, meaning only half its value is included in the estate, but a family of this nature could still face an IHT bill of £24,079, purely because of the pension inclusion.
Where the property is owned entirely by one person in the couple who then passes away, the bill would be more than three times higher because the estate is far bigger.
This is because there is £980,637 worth of assets. The person inheriting the estate benefits from £325,000 worth of tax-free inheritance, plus an extra £175,000 for their home, totalling £500,000. Some 40 per cent tax is charged on the remaining £480,637, which equals £192,254.
Across Wales, Scotland and Northern Ireland, where lower house prices meant there was previously no tax owed for families with similar pensions, bills in joint-ownership cases will still be £23,891, £21,392 and £20,007 respectively.
Jon Greer, head of retirement policy at Quilter, said: “Charging inheritance tax on a pension someone could not access and will never be able to use due to passing away before the minimum pension age is optically terrible for the Government.
“Married couples are protected by exemptions and allowances; cohabitees aren’t. Policymakers should consider carve-outs or transitional reliefs for working-age deaths, particularly when young children are involved.
The Treasury has been contacted for comment.
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