Martin Jones: Don't ignore pension freedom in IHT planning

Two reasons for a rethink

clock • 3 min read

Pension freedom may have been around for two years now but its effects are still filtering through into other areas of financial planning. Here Martin Jones considers the role it can play from an IHT perspective

While the advent of pension freedom two years ago mostly caught the eye as a result of the new ability to take benefits free from caps, there were also important rule changes that make pensions attractive for other reasons. As advisers will know, trust-based pensions fall outside a client's estate, which means they are normally exempt from inheritance tax (IHT). Yet this has not always been a primary motivator in advising clients to put funds into a pension. Two factors might now cause a rethink. The first of these is the news IHT receipts are at their highest level since the tax's in...

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