Pension funds and Approved Retirement Funds (ARFs) are also assets for Capital Acquisition tax purposes. The transfer of these assets must also be considered when planning for inheritance tax.
The table below highlights the tax implications on pension pay out after that pension has been accessed on Death.
| Relationship to ARF Holder | Income Tax | Assessable for Inheritance Tax |
| To an ARF owned by spouse or civil partner of the deceased ARF holder | No | No |
| To a child of the deceased ARF holder or to a child of the civil partner of the deceased ARF holder - child aged under 21 at date of death | No | Yes |
| To a child of the deceased ARF holder or to a child of the civil partner of the deceased ARF holder - child aged over 21 at date of death | 30% Income Tax Rate | No |
Careful planning can insure that any tax leakage on the transfer of pension asset is kept to a minimum.
Should you wish to discuss this or your pension funds further, please do not hesitate to contact us.