HMRC Discussion Paper on Inheritance Tax (IHT) and Pension Simplification - LITRG response

Published on 4 October 2005

The discussion paper describes how pensions choices will change after 5 April 2006. It considers the implications of current IHT law or where this is considered impracticable in any respect, asks for suggestions as to how it should be modified.

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. The paper goes on to consider in what circumstances should an IHT charge be levied and how the system would work in practice.

To see the LITRG response please use the link below.

Contact Name: Robin Williamson (Tel: 0844 579 6700; Fax: 0844 579 6701)

(04-10-2005)

To open the file click below:
IHT & Pension simplification - LITRG response