Does it make sense to gift surplus pension income?

Gifting pension income using the 'normal expenditure out of income' IHT exemption might seem a pointless exercise - after all, why give away something which isn't in your estate in the first place? But if pension withdrawals can be taken tax free (or at least at a lower tax rate than the beneficiary may pay on any inherited pension) there may still be a strong motivation to do so as part of an effective estate planning strategy.

Read our insight to see:

  • How regular withdrawals from a flexible pension can be used to reduce IHT
  • What counts as income for the purposes of the exemption
  • The 'rules' for a successful claim.

To find out more read the techzone insight article here



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