Q. I understand pensions will be brought into the realm of inheritance tax (IHT) in the next couple of years but I wondered if there was any information concerning how the value of the pension will be assessed?
Other assets have a financial value which is easily understood. They may also be given away and, provided that the rules are adhered to, may avoid IHT.
I do not believe the same can be said for pensions. My understanding is that they cannot be given away during your lifetime, which is why the government is looking to include them within the IHT assessment.
The real value of a pension may depend on the tax treatment it will be subjected to. When a pension is assessed for IHT purposes, is it the full value of the remaining pension that becomes part of the estate for IHT?
Please note I live in Scotland — will this affect the income tax charged to my beneficiaries?
