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Steven Goddard CEO Pension Playpen |
Coffee Morning – IHT on Pensions…REALLY!!! CPD included
Type – Teams Online
When – Tuesday 17th March at 10:30am
You are cordially invited to attend our next Coffee Morning. At this event we are delighted that Mark Plewes from WBR Group will be presenting his thoughts on the change in IHT for the Pensions landscape.
He will give us his thinking of an overview of where things sit with the current IHT proposals on unused pensions passing through parliament and any lingering concerns that there might still be around implementation and issues. He will also want to touch on how the potential complexity of the plans might impact outcomes for beneficiaries and whether there is presently a risk of wider detriment and scam activity in terms of the confusion that such a change will cause.
Background:
In December 2025 the Government published the Finance Bill containing provisions to bring pension scheme death benefits within the scope of inheritance tax from 6 April 2027. We look at what has changed since the legislation was originally published in draft, and consider what action SIPP and SSAS providers need to be taking now.
Agenda
- What to do now?
- How will pension planning change?
- Occupational vs SIPP/SSAS?
- What are the alternatives?
- Will a new government U Turn this decision?
TO REGISTER
Please add to your calendar and click HERE on the day
Mark Plewes is Head of Technical at WBR Group and recently appeared by invitation at the House of Lords to inform the pensions finance bill debate.
Mark has been at WBR Group for over 3 years and prior to this role he was Senior Technical Specialist at Rowanmoor.
This should be a lively session with emotions running high!!.
Clause 67 of the Finance Bill inserts a new 567B ITEPA
2003 which applies where IHT is paid in respect of
pension death benefit: Can this be clarified, as I have quite different
interpretations? This is the most favourable
If the pension pot is £1000 and the IHT is £400,
there will only be £600 to be paid out as taxable
pension income.
When the £600 is paid out, the first £400 of pension
payments will be subject to a deduction of £400 (being
the amount of the IHT paid from (a) above) and the
balance of £200 will be taxed as income. So a basic rate
taxpayer will pay income tax of £40 on this £200, a
40% taxpayer will pay income tax of £80, and a top
rate taxpayer will pay £90.
The taxpayer will therefore end up with a total tax of
£440 or £480 or £490 (which represents an effective
combined tax rate of 44%,48% or 49%) depending on
his marginal rate of income tax.
That is not great, but not all that bad either. And it is
certainly not the 67% which was where we started.