Martin Lewis reveals pensions loophole to hand wealth to wife or kids | Personal Finance | Finance

Martin Lewis has revealed a huge tax loophole which could save you thousands on inheritance tax rules.

The money expert has spoken to a pensions specialist, where he learned of a foolproof way to pass wealth on to your spouse or children after you die, without you or them paying any inheritance tax on it.

Martin spoke to pensions specialist Charlotte Jackson, Head of Guidance at the Money and Pensions Service, to issue the huge tip to listeners out there with pensions.

Charlotte told him how you can use a pension to ‘pass on wealth’. She said: “Pensions are a way of passing on wealth to your dependents. So your spouse or children.

She told him via his Spotify and BBC podcast: “What we’re seeing more of now is people saving even in later years and not accessing that pot because it comes with tax relief and you can pass that on. And that’s a really big consideration.”

Martin asked “What’s the tax relief? Inheritance tax?”

She continued: “You don’t pay tax on it at all, so if you don’t access that pension pot and you were then to die, that pension pot gets passed to your spouse or your children. So if you’ve never touched your pension it can be passed down without inheritance tax, without capital gains tax.

“As long as they’ve not touched it.

“If you can afford to save something then what we’re seeing now is more people looking at that as a way of passing it on without inheritance tax. And a lot of people want to be able to do something for their families afterwards.”

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