According to Scottish Life, Alternatively Secured Pensions could be scrapped before A-Day on April 6th this year, as they believe that if providers and advisers continue to promote this type of policy as the family or inheritable type of retirement income, that this could be the next area to be noticed by the Revenue.
Residential property in pensions had been scrapped at the last minute because providers and property developers promoting the investment made HM Revenue & Customs concerned about the impact this could have on the housing market.
Scottish Life now fears that this could happen again with the Alternatively Secured Pensions.
Our view
As with anything that was good about the new Pension Simplication rules i.e. things that actually might encourage people to save e.g. the ability to put your house inside your pension or buy a holiday home, HM Revenue and Customs have 'pulled' it.
We expect a closer review of pensions and inheritance tax planning by the Government.
Learn more about Pension Simplication in our pensions websites.