Unnecessary punishment: Ill-health pension transfers risk IHT trap

Registered pension schemes are currently among the most attractive vehicles for personal savings, principally due to the tax reliefs provided on the way in, and the death benefits available on the ‘way out'. The mantra of 'spend your pension last' is largely based on these principles, and having your money in the most tax-efficient wrapper at all times is one of the key attractions of seeking financial advice. However, in some instances, actions taken to improve the efficiency of pension savings, particularly in the case of ill-health, could lead to some unintended repercussions. I...