Autumn Statement 2015 Inheritance tax
Extracts from the Autumn Statement 2015 – IHT, Deeds of Variation, undrawn pensions.
The Autumn Statement confirmed that Deeds of Variation will continue, despite the fact that they have been used by wealthy Labour politicians. Also some potential additional IHT benefits for victims of persecution to do with the most recent World War. And a backdating of IHT relief on undrawn pensions.
3.35 Inheritance tax exemption for compensation and ex-gratia payments to victims of persecution during the World War II era – the government will legislate Extra Statutory Concession F20, which gives an inheritance tax exemption in respect of certain compensation and ex-gratia payments for World War II claims. The legislation will include payments made under a recently created compensation scheme known as the Child Survivor Fund. The legislation will apply to deaths on or after 1 January 2015. (Finance Bill 2016)
3.36 Inheritance tax and undrawn pension funds in drawdown pensions – The government will legislate to ensure a charge to inheritance tax will not arise when a pension scheme member designates funds for drawdown but does not draw all of the funds before death. This will be backdated to apply to deaths on or after 6 April 2011. (Finance Bill 2016)
3.37 Deeds of variation – Following the review announced at March Budget 2015, the government will not introduce new restrictions on how deeds of variation can be used for tax purposes but will continue to monitor their use.