Gifting to pensions

Gifting to pensions is one way to ensure that money left to grandchildren will not be swallowed up by inheritance tax - with the added benefit that the money will be preserved for them until they may need it

Benjamin Franklin famously said: "Certainty? In this world nothing is certain but death and taxes." Well, of course this is still true, but Lord Jenkins of Hillhead, the former Labour Home Secretary and Chancellor of Oxford University, also said: "Inheritance tax is, broadly speaking, a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue." Therefore, why someone who has paid up to 40% income tax, plus taxes such as VAT and National Insurance, together with perhaps capital gains tax during their lifetime would be happy to pay a further 40% to the ...