The Government’s proposal to scrap stand-alone pension term assurance may result in even more clients being stung by inheritance tax bills, warns Standard Life.
Head of estate planning Julie Hutchison says ending stand-alone PTA is a deliberate ploy to glean more revenue from taxpayers.
She says: “What problem is the Government seeing here? If we lose stand-alone PTA, it may result in higher IHT bills being paid. Alternative term insurance policies will be subject to IHT charges but PTA would have to be subject to a master trust and would therefore sit outside the deceased’s estate.”
An annex to the pre-Budget report says: “The rebound in the housing market during 2006 will increase receipts of both capital gains tax and inheritance tax from 2007/08, given tax payment lags.”
Park Row Corporate & Private Clients IFA Tony Clements says: “Yet again, the Government has wasted industry time and resource by introducing PTA in April and only eight months later taking it away.”