Family Sipps could be taxed - Lawson

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...