Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Chapter IHTM17084

Document Cited authorities 1 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM17084
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

When a payment is made by a pension scheme into a trust set up to receive death benefits, the property is no longer held for the purposes of a pension scheme. It is treated in the same way as any other relevant property and is liable to the ten-year anniversary charge and exit charges (IHTM04096).

Where the pension scheme is itself not trust based (for example it is a retirement annuity contract, and the death benefits are paid into a relevant property trust) the ten-year anniversary is based on the date the trust was set up by the member, either during their lifetime or by their Will.

Where the pension scheme paying the death benefits is a trust based scheme, the funds are moving from one settlement to another and IHTA1984/S81 will apply to determine the date of the 10-year anniversary. In this case, the date for the ten-year anniversary in the receiving trust is based on the date the member first joined the original pension scheme.

Example
  • Hilary became a member of a trust based pension scheme on 15 May 1974
  • She set up a new...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT