Pensions and IHT

[Bouleversee]

Has it always been possible to leave one's pension to children/grandchildren without IHT being payable? I was not aware of it till fairly recently so wonder if it is a relatively recent piece of legislation. Not relevant to my circs. unfortunately; I have only ISAs where there is no such concession.

[supremetwo]

Has it always been possible to leave one's pension to children/grandchildren without IHT being payable? I was not aware of it till fairly recently so wonder if it is a relatively recent piece of legislation. Not relevant to my circs. unfortunately; I have only ISAs where there is no such concession.

There were several changes after April 2015, but it was not so much inheritance tax but the 55% death charge if you died before age 75 on any pension fund that was in drawdown.

Recipients are now subject to tax at income rates:-
https://www.gov.uk/tax-on-pension-death-benefits

https://www.youinvest.co.uk/pensions-an ... -and-death

[Bouleversee]

Thank you, supremetwo. I don't think my late husband was aware of this when he decided to buy an annuity with what remained of his Equitable Life drawdown after the debacle but perhaps more likely it hadn't been introduced then..

[Urbandreamer]

Has it always been possible to leave one's pension to children/grandchildren without IHT being payable?

Some people will tell you so, because in effect it is/was for them.

The truth is somewhat more complicated and best viewed by considering the meaning of the "expression of wishes" form that company pension trusties asked people to fill out.

In simple terms the trust can despose of assets as it sees fit as long as it is in the best interest of its memebers. Gifting a sum to the family of a deceased member did not attract tax. However if they agreed in advance to PAY the family a sum then as I understand things it would be considered as a asset belonging to the deceased (or possibly a codicil upon the will) and so subject to IHT. Hence one reason that the form was an expression of wishes.

I googled this and hope that it may be of some interest (though it won't change past events or current situations).

https://uk.practicallaw.thomsonreuters. ... sc.Default)&firstPage=true&bhcp=1

Thankfully the current situation re IHT is a lot clearer.
Though people with dependents, organising a private pension, may still have to organise trusties to administer the dispersal of funds should they die before their beneficiaries reach maturity.

[Bouleversee]

I wasn't thinking of company pensions. I meant Personal Pensions or SIPPS and I was referring purely to IHT exemption.

[CryptoPlankton]

I wasn't thinking of company pensions. I meant Personal Pensions or SIPPS and I was referring purely to IHT exemption

..."so I am sorry if I wasn't clearer, but thank you for the time and effort you put into answering anyway"...?