Do not double tax bequeathed pensions by including them in IHT calculations.

Background

Leave the current arrangements in place whereby any residual amounts left in self invested pension pots remain outside IHT calculations. They will be taxed as they are drawn by the recipients as they would be if they were drawn by the pensioner during their life.

Additional details

Many savers such as the petitioner have been directed to save into their pensions rather than in other savings vehicles and have collected significant sums of money in these, some of which will be passed on to their children when they die who will pay income tax as they draw them down. In many cases it is too late for savers to change strategy as it is unlikely they would have the time to draw down sufficient of these defined contribution pensions before they die.