In the run up to the Budget there were numerous rumours circulating about pension schemes being taxed more harshly. The hot favourite restricting tax-free cash also known as the pension commencement lump sum (PCLS) did not come to pass but another favourite the application of inheritance tax to pension benefits on death was well and truly hit.
The government’s proposals were explained in a consultation document and it quickly became apparent that what was proposed would result in immense complications probably leading to most lay people never wanting to be appointed as an executor.
Inheritance tax (IHT) can already arise on pension plans in cases where people in serious ill heath transfer pay large contributions or declare an integrated trust (see later) of death benefits. But in general since 2015 death benefits payable under registered pension schemes have been...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
