HMRC’s proposals to make pension scheme administrators liable for reporting and payment of IHT as part of the plans to bring pension funds within the charge to IHT from April 2027 create several problems according to the Society of Pension Professionals (SPP).
Responding to HMRC’ consultation on the process to implement the changes the SPP highlights the potential for significant delays in paying out benefits which it says could cause unnecessary financial hardship. ‘The proposals are also unclear as to what is (and isn’t) in scope impose unrealistic and impractical timescales and apply interest charges or penalties on PSAs for delays over which they have little or no control’ says the SPP.
Alternative options could include continuing to use existing payment methods leaving calculation and payment of IHT to the personal representatives and HMRC or for the benefit to...
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HMRC’s proposals to make pension scheme administrators liable for reporting and payment of IHT as part of the plans to bring pension funds within the charge to IHT from April 2027 create several problems according to the Society of Pension Professionals (SPP).
Responding to HMRC’ consultation on the process to implement the changes the SPP highlights the potential for significant delays in paying out benefits which it says could cause unnecessary financial hardship. ‘The proposals are also unclear as to what is (and isn’t) in scope impose unrealistic and impractical timescales and apply interest charges or penalties on PSAs for delays over which they have little or no control’ says the SPP.
Alternative options could include continuing to use existing payment methods leaving calculation and payment of IHT to the personal representatives and HMRC or for the benefit to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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