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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Pensions: alternatively secured pension (ASP) between 6 April 2006 and 5 April 2007: position on the death of a dependant not within IHTA84/S151B

The legislation is contained in IHTA84/S151C and applies to a dependant (not within IHTA84/S151B) of a scheme member who dies with funds in a dependant’s ASP. This could occur, for example, where a dependant of a scheme member (who died before age 75) took their pension benefits as a dependant’s unsecured pension and on reaching 75 their pension became a dependant’s ASP. The value of the ASP funds is treated as part of dependant’s chargeable estate on death which includes the value equal to the value of the ‘relevant amount’. The relevant amount is defined as the value of the dependant’s ASP funds on death less any payments made to charity within the specified time.


The dependant of a scheme member who died under age 75 chooses to take an ASP from the pension pot he inherited.

Jeffrey’s wife’s dies at age 69. Jeffrey inherited her pension fund and drew it as a dependant’s Unsecured Income. When Jeffrey reached the age of 75 it became an ASP. Jeffrey died at age 82 when the nil rate band was £285,000 leaving a Free Estate of £400,000 and with £100,000 left in the ASP fund.

The total estate is £500,000 giving a tax liability of £86,000. This apportioned between Jeffrey’s Free Estate (£68,800) and the ASP fund (£17,200) in the normal way.


The immediate Inheritance Tax charge by reference to Jeffrey’s death is payable by the pension scheme administrator (IHTM17353).