Commentary

I4.125 Pension scheme rights on death―introduction

IHT, trusts and estates

I4.125 Pension scheme rights on death―introduction

I4.125 Pension scheme rights on death―introduction

This is a topic where HMRC practice1 is of particular importance.

Pension arrangements do not fit easily into the structure of IHT. Many pension arrangements (though not all) are settlements for IHT purposes2 and if no special provision were made pension funds would be subject to IHT charges on settled property. Certain pension rights arising before 22 March 2006 could be interests in possession (see I5.141–I5.148) and a charge on an appropriate amount of the settled property could arise when the interest terminated on the ending of the pension or annuity3.

Lump sums payable

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