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HMRC Discussion Paper on Inheritance Tax (IHT) and Pension Simplification - LITRG response
The discussion paper on Inheritance Tax (IHT) and Pension Simplification sets out how pensions choices will change after 5 April 2006. It then goes on to consider the implications of the current IHT system on the new pension regime and asks for suggestions as to how it should be modified where the existing law is considered impracticable in any respect.
The crux of the paper is whether by deferring their pension, the scheme member is omitting to exercise a right and thereby diminishing their estate and potentially increasing that of their dependants. Accordingly, the LITRG response to the paper was from the perspective of people on low incomes who cannot afford to be professionally represented and who therefore are unlikely to understand the full ramifications of what is proposed. However they are more than likely to have occupational pensions and so be unwittingly subject to potential liabilities after 5 April 2006.
LITRG have proposed an alternative solution to that currently being suggested so to see the our response please use the link below.
Contact Name: Robin Williamson (Tel: 0844 579 6700; Fax: 0844 579 6701)
To open the file click below:
IHT & Pension simplification paper - LITRG response