Shorter Reads

Pension transfers may result in Inheritance Tax Charge

1 minute read

Published 23 October 2018

Share

Key information

  • Services
  • Private Wealth
  • Tax & Estate Planning
  • Trusts

Citywire has commented on the Court of Appeal decision of HMRC v Parry & Ors where the appellant argued that a lifetime pension scheme transfer was not a transfer of value for Inheritance Tax purposes. HMRC won on the contention that it was.

The Court of Appeal also agreed with HMRC’s assertion that the failure by the pension saver to take lifetime income benefits at a time when she was in ill health, specifically the late stages of a terminal illness, was a further ‘disposition’ under the Inheritance Tax Act and therefore a separate Inheritance Tax charge arose.

Pensions are a very useful tool in the estate planning arsenal, however, this case demonstrates the care that must be taken when reviewing existing provision and before any changes are made. Further, timely planning is key as ill-health may eliminate the possibility of a tax-efficient transfer into another scheme.

https://citywire.co.uk/money/landmark-ruling-raises-pensions-death-tax-risk/a1167436

Related latest updates
PREV NEXT

Arrow Back to Insights

Shorter Reads

Pension transfers may result in Inheritance Tax Charge

Published 23 October 2018

Associated sectors / services

  • Private Wealth
  • Tax & Estate Planning
  • Trusts

Citywire has commented on the Court of Appeal decision of HMRC v Parry & Ors where the appellant argued that a lifetime pension scheme transfer was not a transfer of value for Inheritance Tax purposes. HMRC won on the contention that it was.

The Court of Appeal also agreed with HMRC’s assertion that the failure by the pension saver to take lifetime income benefits at a time when she was in ill health, specifically the late stages of a terminal illness, was a further ‘disposition’ under the Inheritance Tax Act and therefore a separate Inheritance Tax charge arose.

Pensions are a very useful tool in the estate planning arsenal, however, this case demonstrates the care that must be taken when reviewing existing provision and before any changes are made. Further, timely planning is key as ill-health may eliminate the possibility of a tax-efficient transfer into another scheme.

https://citywire.co.uk/money/landmark-ruling-raises-pensions-death-tax-risk/a1167436

Associated sectors / services

  • Private Wealth
  • Tax & Estate Planning
  • Trusts

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up
    Get In Touch Print this page
    Collyer Bristow
    ExpandNeed some help?Toggle

    < Back to menu

    I have an issue and need your help

    Scroll to see our A-Z list of expertise

    Get in touch

    Get in touch using our form below.