Pension contributions for family members can be 90% tax saving: Canada Life

clock • 2 min read

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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Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.