What is the IHT treatment for annuity payments? If taxable, how will the IHT value be calculated?
Furner: Under HMRC’s proposed IHT reforms, the treatment of annuity payments, especially those linked to pensions, will change significantly, and here’s how the new rules will affect them:
Inclusion in the estate:
Most unused pension funds and death benefits, including certain annuities, will be included in the deceased’s estate for IHT purposes, even if the pension scheme has discretionary powers.
Affected annuities:
Lifetime reversionary annuities paid to someone…
