Pensions are increasingly being exploited as a ‘vehicle for bequests’ to avoid inheritance tax, according to a report by the Institute of Fiscal Studies (IFS).

The IFS is calling for a number of reforms to achieve a more ‘coherent tax treatment’ to create a fairer and more economically efficient tax system.

On inheritance tax, the IFS is calling for pension pots to be included in the value of estates at death for inheritance tax, arguing that it should apply evenly across all forms of wealth.