Inheritance tax will not be charged when pension scheme funds are earmarked for drawdown but do not draw all of the funds before death, the Autumn Statement said.
The new legislation for this change will be backdated to apply to deaths on or after 6 April 2011.
There will also be an IHT exemption for compensation and ex-gratia payments to victims of persecution during the World War II era, applying to deaths on or after 1 January 2015.
In relation to deeds of variation, the Government also said that following the review announced in the March Budget 2015, it would not now introduce new restrictions on how deeds of variation can be used for tax purposes but continue to monitor their use.
From an original article by Mark Battersby, Editor, International Adviser.
