Pensions specialist Nathan Bridgeman has launched a petition to stop pensions coming into the scope of inheritance tax.
Bridgeman, who is the director of SeaBridge Ssas, had his petition accepted by the House of Commons yesterday (August 7) and currently has 137 signatures.
The petition, titled ‘Stop the double tax of pension funds and death benefits’, outlines that the tax on pensions funds and death benefits is a disincentive for most people to funding a pension.
It highlighted how when a person dies, the new rules would result in a “disproportionate and unfair” double taxation — IHT and income tax — on beneficiaries.
“We think this double taxation — income tax and inheritance tax means a lot of beneficiaries may have to pay 67 per cent tax,” the petition said.
Bridgeman told FT Adviser his firm hears a lot about the family farm tax and winter fuel allowance, but this reform would also affect “hard working savers”.
“It feels morally wrong to move the goalposts especially for elderly people who don’t have time on their side to change their long-term tax and financial planning. Not all pensions are liquid.
“Our Ssas schemes own the family farm, factory, office or shop and it doesn’t just affect the business owner, it affects the company and employment as well as the pension fund that owns the property,” he added.
The petition needs 10,000 signatures for government to respond and 100,000 for it to be debated in parliament.
Bridgeman said his firm will continue to keep this topic on the agenda and hold the government to account.
“This tax grab is a disincentive to save into a pension and has huge and disastrous consequences given the pension ticking time bomb we face in the UK.
“We need stability in pensions, not for it to be used as a political football,” he said.
Bridgeman said he had already received 634 emails and messages from IFAs and pension savers thanking him for starting the petition and stating their intention to sign it.
You can sign the petition here.
alina.khan@ft.com
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