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It's time to brace yourself. Labour's spiteful, vindictive tax time bomb is coming... and this is who is going to be hardest hit. Every expert I've spoken to is outraged. God help us: JEFF PRESTRIDGE
['Jeff Prestridge', 'Money Editor At Large']
Money | Mail Online
Yet the more damaging Reeves pension time bomb will be triggered next April when new rules governing the taxation of inherited pension funds kick in.
Currently, if you die with an unspent defined contribution pension fund, the remaining value falls outside the inheritance tax (IHT) net.
A few days ago, investing platform AJ Bell called for the Government to rethink its stance on inherited pensions and ‘go back to the drawing board’.
It described the Treasury’s decision to tax inherited pensions as though they are ‘both capital [attracting IHT] and income [liable to income tax]’ as ‘intrinsically unfair’.
My view is that the pension tax grab is wrong on multiple levels.