Part 4Pension schemes etc

Chapter 4Registered pension schemes: tax reliefs and exemptions

Inheritance tax exemptions

203Inheritance tax exemptions

1

The Inheritance Tax Act 1984 (c. 51) is amended as follows.

2

In section 12 (dispositions that are not transfers of value)—

a

in subsection (2), for the words following “if” substitute “it is a contribution under a registered pension scheme or section 615(3) scheme in respect of an employee of the person making the disposition.”, and

b

omit subsections (3) and (4).

3

In section 58(1) (settled property in which no qualifying interest in possession subsists but which is not “relevant property”), for paragraph (d) substitute—

d

property which is held for the purposes of a registered pension scheme or section 615(3) scheme;

4

In section 151 (treatment of pension rights etc.)—

a

omit subsections (1) and (1A),

b

in subsections (2), (4) and (5), for “fund or scheme to which this section applies” substitute “registered pension scheme or section 615(3) scheme”, and

c

in subsection (2)(b), for the “fund or scheme” (in both places) substitute “scheme”.

5

In section 152 (cash options), for the words from the beginning to “or scheme” substitute “Where on a person’s death an annuity becomes payable under a registered pension scheme or section 615(3) scheme to a widow, widower or dependant of that person and under the terms of the scheme”.

6

In section 272 (general interpretation), insert at the appropriate places—

“registered pension scheme” has the same meaning as in Part 4 of the Finance Act 2004;

“section 615(3) scheme” means a superannuation fund to which section 615(3)of the Taxes Act 1988 applies;