Special trusts: pension funds
Approved superannuation schemes and approved personal pension arrangements are generally exempt from the charges on settled property.
But inheritance tax may be payable if
- a member gives up part of their pension in order to provide for a person other than the spouse.
- a member has the power to determine who shall receive a benefit on their death.
- a benefit on the member’s death is payable to their estate.
- a sum payable under the scheme is made the subject of a further settlement.
If you come across a settled pension arrangement, follow the further guidance at IHTM17123