Budget insights (1 of 3): inherited Pensions.

Pensions in Inheritance Tax: Implications for the Average Working Couple The recent announcement by Rachel Reeves, the Labour Chancellor, introduces a significant shift in the UK’s tax landscape, particularly regarding inheritance tax. The proposal now brings inherited pensions under the purview of inheritance tax, a move that could have deep financial implications for working couples…

Institute for Fiscal Studies has suggested restricting relief from inheritance tax (IHT) to raise revenues and make the tax ‘fairer’. 😒

The IFS suggests targeting: Imagine the impact to your business if existing IHT reliefs for owners of small UK businesses! How will the beneficiaries pay IHT? Sell the business assets and stop operating the company? This will have a major impact on the UK economy. This will increase the urgency for inheritance planning and potentially…

Inheritance from overseas

If you receive inheritance from overseas (e.g. India), is there UK inheritance tax? NO. In UK, inheritance is not on beneficiaries like in certain European countries like Portugal but on the estate of the deceased. Meaning the tax is charged on the deceased wealth and then post-tax amount is distributed. Hence any tax from overseas…

Pensions – Protected from taxes?  Think again!

Do you have rental or other income? Are you likely to use all your pension in your lifetime? NO, The good news is that there no Inheritance tax on pensions. Hence, you should use your assets before dipping into your pension. HOWEVER, if you die after 75 years of age as most of us will,…