Labour's inheritance tax raid will hit thousands of UK households who could have to pay tens of thousands more to HMRC
UK households have been alerted to the need for more effective pension use in light of an impending inheritance tax change by the new Labour Party government.
Smith elaborated on the issue, saying: "The prospect of pension funds being taxed twice, if beneficiaries also have to pay income tax on withdrawals, is one that most savers will want to avoid. Also, if the addition of pension savings will push the total value of an estate over the £2 million mark, then the residence nil rate band will start to disappear, and IHT bills will become even more onerous," reports Birmingham Live.
Smith also warned against hasty decisions, adding: "The important thing is not to take drastic decisions and not to be blinded by the tax question. Are you realising losses on investments at a dip in the market to make a big pension withdrawal? Are you leaving yourself sufficient funds in your pension for the rest of your retirement and possibly care costs?
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