The FT reports that Investors who thought
the government had effectively stamped out any opportunity
to pass on their pension assets to heirs were given a glimmer
of hope this week as the economic secretary, Ed Balls, pledged
to consult again with the industry on Alternatively Secured
Pensions.
This week Mr Balls sent a letter stating that he
planned to consult with the industry about the proposed changes
to ASPs and take their views into account.
The tax charge
proposed by Mr Balls comprises the standard 40 per cent inheritance
tax charge and a further 70 per cent "unauthorised
payments" charge on any remaining funds. Provided an investor
had other assets to take them over the £285,000 threshold
for inheritance tax, on an ASP pension pot of £100,000,
this would leave just £18,000 to be passed on to heirs.
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