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Reeves Pension raid - income tax on inherited pension if death before 75
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clue*less
Posted: 02 November 2024 12:40:12(UTC)
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Joined: 03/05/2020(UTC)
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So Reeves will apply inheritance tax on inherited pensions but currently if someone inherits a pension on death before75, they pay no income tax when drawing from it. Will such income withdrawal now also be subject to income tax ( just like the position for death after 75)?
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D Bergman
Posted: 02 November 2024 12:46:58(UTC)
#2

Joined: 22/03/2018(UTC)
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clue*less;324299 wrote:
So Reeves will apply inheritance tax on inherited pensions but currently if someone inherits a pension on death before75, they pay no income tax when drawing from it. Will such income withdrawal now also be subject to income tax ( just like the position for death after 75)?


No.
The only proposed change is the imposition of IHT.
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Julianw on 02/11/2024(UTC)
Thrugelmir
Posted: 02 November 2024 13:28:05(UTC)
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Not a raid. Pensions are to provide an income in retirement. Not a vehicle to both save on tax and avoid tax to pass money onto dependents.

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Robert D on 02/11/2024(UTC), Julianw on 02/11/2024(UTC)
Robert D
Posted: 02 November 2024 13:31:04(UTC)
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Thrugelmir;324308 wrote:
Not a raid. Pensions are to provide an income in retirement. Not a vehicle to both save on tax and avoid tax to pass money onto dependents.




Correct. It's a loophole that needed to be closed and distorted behaviour.
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2 users thanked Robert D for this post.
Thrugelmir on 02/11/2024(UTC), Julianw on 02/11/2024(UTC)
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