Commentary

I3.146A Commercial transactions for IHT―pensions

IHT, trusts and estates

I3.146A Commercial transactions for IHT―pensions

I3.146A Commercial transactions for IHT―pensions

Pension premiums may fall within IHTA 1984, s 10 if the purpose of the payment is to provide a fund for pension income in retirement. Cases where s 10 may not apply will be those made at a time when the health of the individual making the payment is failing. HMRC practice is to review payments made within two years prior to the death if they are 'substantial and unusual (where they are not made under regular arrangements that have been in existence for more than 2 years)1.

HMRC regards a pension transfer from, for example, a final salary scheme to a SIPP without immediately vesting the benefits under the SIPP as a transfer of value if made within the two years prior to the death.

Parry v HMRC

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