A pensions expert has suggested that a Ministerial Statement read out in the House of Lords earlier this week, hints that family SIPPs might be taxed in some form.
Senior technical manager at Standard Life John Lawson believes the Revenue will add a notional amount to the estate of the member on death, which will then be taxed at 40% - the current inheritance tax rate. Lawson provides an example of a person with a drawdown fund at 75 of £100,000 from which no income is drawn and grows to £150,000 at date of death at age 85: The Inland Revenue will assume the policy holder bought a 10-year guaranteed single life annuity with the £100,000 rather than put it into drawdown If the expected income from such a notional annuity over the 10-year perio...
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