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Tax pensions on death to make Budget add up, IFS tells gov’t

Tax pensions on death to make Budget add up, IFS tells gov’t

IFS suggests radical set of tax rises on wealthy retired to make UK tax system more efficient. Pension pots should be taxed on death, the Institute for Fiscal Studies (IFS) has argued in its Green Budget. It described the system brought in with the pension freedom reforms as the "absurdly generous treatment of accumulated pension pots which are bequeathed".
The thinktank's traditional pre-Budget report, published in association with Citi Research and the Institute of Chartered Accountants in England and Wales, said this is one of a series of possible measures for raising taxes on better-off pensioners, which would improve the efficiency of the tax system.

Pension experts have warned that a move to tax pensions on death would undermine many retirement plans, including those who might not have transferred out of defined benefit (DB) schemes. Please link to International Adviser to read the full article by John Lappin.

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