Warning over flagging IHT avoidance in pension advice

Paul Kennedy warned that HMRC has "always taken a keen interest" when pensions are used not for retirement but for IHT [avoidance] purposes. Suitability letters that reflect that are likely to face scrutiny from the tax man, he said. Since 6 April and the introduction of the pension freedoms, retirement pots, including annuity income, inherited from someone who dies before age 75 will not be taxed at all, as long as payments begin within two years of the death. The new pension rules have given rise to speculation that they will be used to pass on money to the next generation withou...