The Society of Pension Professionals (SPP) has publicly expressed its concern about the upcoming plans to levy inheritance tax on pensions.
It has stated the roadmap laid out for this by HMRC would make demands on the providers of pension schemes that cannot possibly be met. The organisation is also warning that the result of this would be unwanted additional stress for the bereaved families involved. Given the SPP is the official body representing pension providers, this is a warning that should be taken seriously.
The inclusion of pensions in inheritance tax calculations is due to come into effect in April next year. HMRC recently issued a technical consultation that laid out how it will be implemented. However, the SPP says that adjustments to that are necessary to make it viable.
One problem it has identified is with the expectation that pension providers or insurance companies should work out whether an individual is entitled to exemptions. It argues that this would be particularly difficult in cases involving complicated rules about long-term residency. The SPP wants this to be handled by Probate solicitors in North Wales and other places.
Shayala McRae from the SPP told Today’s Wills and Probate:
“Determining inheritance tax exemptions often requires information that pension schemes simply do not have and cannot reasonably obtain.”
The SPP also states that pension providers should not have to supply data on benefits that is irrelevant to the issue.
For solicitors in Llandudno who can help with the tax planning aspects of estate Probating, call Bennett Smith Solicitors today.
