15 October 2007
The Government has closed a loophole which allowed members of
small-self administered schemes to bequeath their pensions to a
family member, rather than buy an annuity.
The closing of the loophole means that handing money to family
in this way could result in a tax charge of up to 70%, but the
payment could also be subject to inheritance tax, taking the tax
charge up to 82%.
