Pension Beneficary Lifetime Allowance & post 75 pension contributions

seanhurst

Ok could i have your thoughts on the follwoing two issues please;

Client age 80, inherited pension from spouse who was over age 75 at death. The beneficaries of this pension are their 3 children.

Beneficary Lifetime allowance

One of the children is already over their lifetime allowance. If they received anything frm the parents pension as a beneficary would this be included as an additional payment and therefore create tax problems for them?

Pension contributions post age 75

The client is aware that after age 75 they will not get tax relief on any pension contributions. Ignoring the contribution tax relief if the provider accepts payments does this too sit outside of the estate for IHT purposes?

arongunningham

Beneficary Lifetime allowance: The only LTA test is on the member, not their beneficiary. So it doesn't matter what their own position is (they will have to pay income tax on withdrawals however).

Pension contributions post age 75: yes