Matthew Stephens discusses how recent changes brought in by the Finance Act can bring estate planning benefits and lessen the impact of inheritance tax.
The Finance Act 2011 confirms that “where a… member of a registered pension scheme… omits to exercise pension rights under the… scheme, section 3(3)… does not apply in relation to the omission.” The reference is to section 3(3) of the Inheritance Tax (IHT) Act 1984, which provides that IHT charges apply where an ‘omission’ takes place. In relation to pensions, the ‘omission’ is a deliberate failure to take benefits at a time when the member is able to. In such circumstances, IHT could be levied on the value of the pension benefits that have not been taken. It is the value of ...
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