When is Inheritance Tax charged on alternatively secured pension funds?
The timing of the Inheritance Tax charge on the death of a scheme member with left-over funds in an alternatively secured pension is dependent on how the funds are applied under the pension scheme rules. The Inheritance Tax charge applies on the death of the scheme member unless the funds are applied to provide pension benefits for a relevant dependant in which case it is effectively deferred until cessation of the relevant dependant’s pension benefits and then it is only the residue of the left-over funds which is chargeable.
