We’ve often said that Inheritance Tax inspires disproportionate fear and loathing, as the numbers actually likely to pay it are pretty small. This increases, of course, amongst clients of financial advisers, who (see previous discussions on the ‘advice gap’) will usually have a bit of money on which to be advised. When pensions arrive in the IHT net in 2027, the number of over 55s (those of us nearest to the possibility of paying) likely to pay is set to increase tenfold to around 20%, which shows how few it IHT might have previously affected. Getting the money in will be messy and complicated for HMRC, despite their plan to delegate most of the work to pension companies and executors (for which read, in most cases, solicitors). And what will you (if you’re old enough and affected) be able to do about it? Well, a few things, none of them great, but trying to spend it all could, I guess, be fun if you still can!
“Pensions minister: ‘we have created saving pots, but not a pension system’”
The OBR (Office of Budget Responsibility, as opposed to the OBI, often said to be housed in No.11) said this week that pensions were one of the biggest problems to be faced by this and future governments.
