NEST's decision to raise its maximum contribution cap and lift transfer restrictions from next month has left members at risk of inheritance tax (IHT) charges of up to 40%, according to Salvus Master Trust.
As of April 2017, NEST - the National Employment Savings Trust - will lift its contribution cap from £4,900 to £40,000 per year and for the first time open its door to transfers. This may see NEST members hit by taxes of up to 40% in the event of death because, unlike traditional trust-based schemes, funds held under NEST form part of a person's estate, Salvus claimed. The workplace pension provider has subsequently called for government-backed NEST ‘urgently' to review these policy changes to avoid excessive charges. Managing director Graham Peacock said: "There wasn't necessarily a ...
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