PBR - HMRC closes tax avoidance loophole

Providers of small self-administered pension schemes (SSAS) have marketed scheme pensions as a way of passing pension money onto family without tax since A-day. However, the Treasury has clamped down on what it regards as an abuse of the rules. The Government's Pre-Budget Report (PBR) says it will ensure tax-relieved pension savings diverted into inheritance using scheme pensions and lifetime annuities become subject to unauthorised payment tax charges. The rules will treat any increase in the pension rights of one member following the death of another member - if the two members were ...