New Finance Act lays down law on pensions and inheritance tax

tax

Although pensions were once IHT efficient, the Revenue and Customs has made changes that pension investors should be aware of when considering efficient ways to pass on wealth

Inheritance tax (IHT) has become more of a news story in recent years as house prices have increased, far outstripping the IHT nil rate band which is currently £285,000. For many people their pension fund is likely to be at least their second most valuable asset. In the past pensions have generally been regarded as being IHT efficient owing to their structure, namely discretionary trusts with the disposal of any death benefits being at the discretion of the scheme trustees. There was also something of a general exemption for occupational pension schemes in section 151 of the Inheritance Ta...