Ask the expert: How do I avoid double tax on my pension?

I had previously planned to save my Self-Invested Personal Pension (SIPP) as a gift for my two children after my death. As you suggest, the same pension wealth could, in some cases, be subject to both IHT and income tax. Income tax may apply if the pension holder dies after the age of 75, with beneficiaries, those inheriting the pension, taxed at their marginal rate. If death occurs before age 75, income tax is not usually due. But, unlike inherited pension income, your beneficiaries won’t normally pay income tax on the money they inherit from the ISA.