In Parliament

IHT and pensions

The way that inheritance tax will apply to choices made by pension scheme members under the new simplified pension regime has been clarified by Dawn Primarolo.
She said that the same broad principles will continue to apply to the new regime as they have done to the old rules. Referring to the Revenue's statement of practice published in 1992 setting out when IHT would be applied to choices made under the pension rules in force at that time she said that as 'a new and wider range of choices will be available under the simplified regime that statement will no longer be valid'. The Revenue is therefore to publish a consultation document shortly setting out its analysis of the inheritance tax issues.
With regard to alternative secured pensions as opposed to taking an annuity at age 75 Ms Primarolo said that...