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Where Taxpayers and Advisers Meet

SIPP - IHT implications

Colin61
Posts:32
Joined:Sun Dec 31, 2017 3:53 pm
SIPP - IHT implications

Postby Colin61 » Mon Feb 19, 2024 6:53 pm

I have a SIPP in my own name.

My understanding is that I can leave this to my wife in my will and there will be no IHT, CGT or income tax due .. until she draws down from the SIPP when it would be classed as Income.
When my wife were to die, if she left the SIPP to our only son, would it be tax free for him?

Alternatively, could I leave the SIPP to my son and he enjoy the same benefits... of no tax due until he drawsdown.

Thanks, Colin

pawncob
Posts:5110
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: SIPP - IHT implications

Postby pawncob » Tue Feb 20, 2024 11:02 am

https://www.ii.co.uk/ii-accounts/sipp/inheritance-tax
With a pinch of salt take what I say, but don't exceed your RDA

Colin61
Posts:32
Joined:Sun Dec 31, 2017 3:53 pm

Re: SIPP - IHT implications

Postby Colin61 » Tue Feb 20, 2024 3:55 pm

https://www.ii.co.uk/ii-accounts/sipp/inheritance-tax
Thank you.

So if we left the SIPP to our son, could he retain it as a SIPP, not drawdown any income until he retired and then be taxed as regular income?

SuperSpurs106
Posts:23
Joined:Wed Jun 15, 2022 3:25 pm

Re: SIPP - IHT implications

Postby SuperSpurs106 » Thu Mar 07, 2024 3:08 pm

Yes, that's correct.

cliffordpope
Posts:84
Joined:Thu Jun 24, 2010 8:45 am

Re: SIPP - IHT implications

Postby cliffordpope » Fri Mar 08, 2024 5:15 pm

I have a SIPP in my own name.

My understanding is that I can leave this to my wife in my will
My understanding is that a pension passes by a letter of wishes to the pension provider, and is entirely separate from a will. Is that not correct?

AGoodman
Posts:1765
Joined:Fri May 16, 2014 3:47 pm

Re: SIPP - IHT implications

Postby AGoodman » Fri Mar 08, 2024 6:45 pm

it is correct. SIPP death benefits are not part of an individual's estate. The "owner" of the SIPP can nominate who should benefit from the fund after their death


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