View more on these topics

Treasury confirms IHT exemption for drawdown


Funds left in drawdown pensions after death will not be subject to inheritance tax, the Government has confirmed.

In the Autumn Statement document published today following the Chancellor’s speech, the Treasury committed to legislative changes as part of the Finance Bill 2016.

The exemption will be backdated to deaths on or after 6 April 2011.

In 2014 the Government announced cuts to the ‘death tax’ applied to pensions.

But HMRC could have potentially pursued people for IHT if they were judged to have left money in pensions to avoid it becoming part of their estate and therefore liable to the tax.

AJ Bell head of technical resources Gareth James says: “People in flexible or flexi-access drawdown have had the option of withdrawing their whole fund, and the action of choosing not to do this had the effect of reducing the value of their estate on death, thus creating the IHT liability.

“I don’t believe that HMRC has been applying IHT in these circumstances, but it is helpful that any doubt over the potential liability to IHT will be removed.”

The document also says the Finance Bill will simplify how scheme pensions are payable on death.



10-year jail term upheld for ex-adviser behind ‘giant Ponzi scheme’

The Court of Appeal has upheld a 10-year prison sentence against a former adviser who defrauded investors of £3.5m. Phillip Boakes appealed his sentence after pleading guilty to three counts of using a forged instrument, two counts of fraudulent trading and one count of accepting deposits without authorisation. Boakes had been an IFA but continued […]


Govt plans “emergency pause” for auto-enrolment

The Government has drawn up plans to apply an “emergency pause” to the rollout of auto-enrolment to small and micro firms. Ahead of a rapid increase in the number of firms hitting deadlines to enroll staff in schemes, the Department for Work and Pensions has plans in place to halt the programme if necessary, the […]

Mark Barnett: Rise in UK dividend payout ratio is unsustainable

One question I am being asked a lot at the moment is how the stock market volatility and global events of the past six months have affected my investment strategy. When equity prices move significantly I will always reappraise the positioning of my portfolios but this tends to be more on a rolling 12- to […]

Sticking to valuation discipline when investing in China

Journalist Alexis Xydias discusses the opportunities – and potential pitfalls – of investing in China with Artemis fund manager Peter Saacke. With Peter holding significant positions in China in the Artemis funds he manages, journalist Alexis Xydias quizzes Peter on the risks of investing in Chinese stocks – including over-valuations, margin trading and financial reporting issues. Click here for video


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm