Pensions Just Keep Getting More Flexible
HMRC have just announced that they are exempting from IHT any residual amounts left in drawdown funds.
Income drawdown has always been an attractive facet of the pension system. This is particularly so with the new pension freedoms that allow you to drawdown what you want when you want it (so long as you are over 55).
There was a catch that anything you had started to draw and not completely drawn before death would pass into your estate and be charged to inheritance tax.
HMRC have now moved to withdraw this and allow residues of drawdown pots to be passed down free from IHT.
Yet another reason to look again at pensions.