Making a pension contribution for family members can not only reduce your estate for inheritance tax purposes but can also attract tax relief on those pension contributions. In one scenario, this could generate a 90% tax saving according to Canada Life, who crunched the numbers. Any contribution from one individual to another family member is treated as if it is the member's own contribution into their pension. This means not only will you reduce the value of your estate for inheritance tax purposes - for example reducing your estate by making a gift of £32,000 could save £12,800 in IHT ...
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