Government confirms standalone death-in-service benefits exempt from IHT changes

The industry body highlighted that an earlier draft of Clause 63 of the Finance Bill required members to have been actively accruing benefits under a scheme at the time of death to qualify for an exemption. GRID said that most group life arrangements, although under pension legislation, are policies that provide just death benefits, so there is no pension accrual in that case. It said that while the condition of the clause may suit pension schemes involving ongoing retirement benefit accrual, it created uncertainty for more than eight million employees covered by stand-alone death ben...