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From 10 October the Government has further tightened the anti-avoidance
rules aimed at preventing pension scheme members from avoiding inheritance
tax by arranging their pension entitlement so as to benefit their relatives
after their death. The legislation imposes an unauthorised payments charge
at an aggregate 70% for the member and the scheme. It does not apply to
schemes with 20 or more members where the pension increase caused by the
arrangements is at the same rate for all. There is a secondary inheritance
tax charge, with offset for the unauthorised payments charge, where the
member dies after reaching age 75, raising the aggregate rate of charge to
82%. |
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