The application of inheritance tax (IHT) to unused pensions creates significant operational complexity and risk for providers, BNY Investments head of retirement Richard Parkin has said.
Speaking to Professional Adviser, the retirement specialist highlighted that the proposed rules make the pension provider responsible for payment of the IHT on the pension proceeds. "This creates significant operational complexity and risk for providers and is expected by many to lead to delays in payments to beneficiaries," he cautioned. "With 61% of advisers telling us that the change will affect all or most of their retirement clients, this new tax regime will have a profound effect on retirement planning. It must be hoped that the final rules are not quite so problematic." In its ...
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