- Contributions to a pension scheme can be a lifetime transfer of value if the member is in ill health or the contributions are made to someone else’s pension.
- Death benefits can be subject to inheritance tax if the estate has a legal right to the payment, there is a lifetime transfer of the death benefit or the member can dictate to whom any benefit is paid.
- Usually pensions are exempt from IHT charges which would apply to settled property. However, there are circumstances when these charges would apply.
- IHT can apply to payments from annuities if the estate is entitled to a guaranteed payment or if value protection applied.
- Previously omission to act was an issue in relation to pensions but legislation changed this.