Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Are all private pensions exempt for IHT

12 February 2024
Issue: 4924 / Categories: Forum & Feedback , Inheritance Tax
Pensions and inheritance tax exemption

My understanding is that following George Osborne’s pension reforms private pensions are now exempt from IHT. However in discussions with a local well respected IFA accountant a number of issues were raised that have cast doubt on my understanding. I am seeking clarification on the following points:

  • that for any pensions before 2000 and not written in trust the inheritance tax exemption would not apply; and
  • that for some policies pension companies will only pay out to beneficiaries the contributions made into the pension and not include any increase due to investment appreciation/compounding.

I would be interested in readers’ views on the above.

Query 20 273 – Toad.

I am not aware of any pension policies that will only pay out contributions.

When George Osborne announced a relaxation of pension fund rules in 2014 the inheritance tax advantages was not the main...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon