Don't take an IHT hit when retiring abroad

Before considering the inheritance tax (IHT) implications of retiring abroad, an understanding of how IHT rules apply to pensions is essential. In 2006, when the new simplified pension tax rules came into force, HMRC formalised the concessionary practice that existed beforehand.  In basic terms, a pension fund owned by someone under age 75 will not form part of his or her estate on death. This is regardless of whether income withdrawals in the form of an annuity or drawdown have commenced. An exception to this principle applies to people in serious ill health; people whose life exp...