The government will legislate to ensure assets left in pensions in drawdown will not attract inheritance tax (IHT) charges, according to Autumn Statement documents.
The government said it would ensure IHT liability will not arise when a pension scheme member designates funds for drawdown but "does not draw all of the funds before death". It added this change would be backdated to apply to deaths on or after 6 April 2011. Pension freedom, which came into force in April this year, gave defined contribution savers over the age of 55 complete access to their pension savings, subject to taxation. The changes opened up the retirement income market meaning many more people can now access drawdown - where pension assets remain invested throughout ret...
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