HMRC internal manual

Inheritance Tax Manual

Pensions: treatment of alternatively secured pensions from 6 April 2007: changes to procedures for charge under IHTA84/S151C

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

Where the charge arises under IHTA84/S151C, the procedures outlined at IHTM17372 continue to apply with the following amendments

  • if the funds are to pass to charity within six months of the death, no charge will arise. The scheme administrator may deliver form IHT105 in such circumstances, which you can accept and issue SL124A and close the scheme member’s file.
  • where the scheme administrator delivers form IHT100 and 100g, you should assess tax in the normal way, but remember this is now a top slice charge.

Where the chargeable value of the dependant’s estate, ignoring the ASP, exceeds the NRB, the calculation is straightforward - the ASP will simply bear tax at 40%. You should create a new entry on COMPASS and select the ‘stats’ title ‘ASP fund chargeable from 6 April 2007’.

Enter the date of the dependant’s death as the Date of Transfer/Event. You should show the remainder of the dependant’s chargeable estate in the ‘Aggregate chargeable estate’ box (what is the PLCT box on ‘normal’ calculations). Unless there are any valuation issues with the ASP funds, the liability will be settled without reference to the remainder of the estate to be settled, so you can issue SL124A for the ASP charge once the tax has been paid.

Where the chargeable value of the dependant’s estate, ignoring the ASP is less than the NRB and the IHT charge arises before the UP charge, you should follow the process outlined above for the IHTA84/S151A charge (IHTM17404).