In a report in industry newspaper Money Marketing, Watson Wyatt has issued a warning that the proposed changes to the Finance Bill may mean that high earners with UURBS (Unfunded Unapproved Retirement Benefits Schemes) may face an inheritance tax charge.
Our view
Inheritance Tax is charged on the value of your estate immediately prior to death. Even though an UURB benefit disappears on death, it is deemed to have some value immediately prior to death. Taxing a benefit that the estate will never receive is unfair and we believe Watson's have a point.