HMRC will not provide some crucial information concerning the changes to pensions and inheritance tax until next spring.
The tax body has posted a technical note offering some guidance around the changes, but falling short of being comprehensive. It will release further information in stages up until spring next year. This means that full clarification will only be available a few weeks before the changes come into effect – on April 6th.
What is known is, as of this date, some pensions will be liable for inheritance tax. This will include defined contribution (DC) pensions. The delay in providing a full breakdown makes it harder for pension schemes to keep members properly informed though. It will not be welcomed by probate solicitors in North Wales either, as they need to plan for tax liabilities.
The information HMRC has released indicates that all pension schemes for a deceased individual will have to be traced by a personal representative (PR). This person will also need to get in touch with the providers of the schemes to ascertain their worth.
This figure will then be put together with the value of the remaining estate to calculate the tax liability. HMRC will be setting up a tool for this.
The PR will need to get the scheme provider to hold back payment of as much as half of the pension if the money is required to cover inheritance tax.
At Bennett Smith Solicitors, we put client care at the heart of our probate services. Get in touch with our solicitors in Bangor for a quote.
