Witnesses from law firms and professional bodies told Lords committee the government’s proposals were ‘unworkable’ as there was not enough time to pay the tax within HMRC’s rigid six-month deadline.

At a House of Lords Finance Bill Sub-Committee, chair Lord Liddle asked about the risks for personal representatives (PRs) who are responsible for administering estates.

John McArthur, member of the technical committee for the Society of Trust and Estate Practitioners (STEP) said: ‘The risk seems to be all on the PRs and executors, not with the pensions scheme administrators (PSAs), that is a big issue.’

Ian Bond, member of the wills & equity committee for the Law Society said: ‘Where PRs are going to be liable for inheritance tax on unused pensions, but they don’t control the asset, this is going to put a lot of people off from wanting to be PRs or executors named in wills. PRs will have to have a long think whether they want to be in the role.’

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