Ask an expert: Inheritance tax on pension schemes

Question

We act for a wealthy husband and wife who are currently in their early seventies. They are both members of their company SSAS which holds funds for their benefit of in excess of £3m.

They also have an unapproved scheme that has been set up overseas with assets in excess of £1m. We are aware that HMRC has just completely updated their manual in respect of IHT on pensions. Please could you advise what IHT charges could arise for our clients under the current regime?

Answer

Inheritance tax on pensions is a very wide subject but the good news is that the scope of inheritance tax was significantly reduced by FA 2011. Historically on the second death a 40% IHT charge could be applied after an...