Ask the expert: How do I avoid double tax on my pension?

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Marianna Hunt is back to answer your burning personal finance questions Got a question for our expert? Email asktheexpert@cityam.comFidelity personal financial specialist Marianna Hunt is back on hand...

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Email asktheexpert@cityam.comFidelity personal financial specialist Marianna Hunt is back on hand...</p>\n\n<a href=\"https://www.cityam.com/ask-the-expert-how-do-i-avoid-double-tax-on-my-pension/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ITDE","symbol_name":"ISHARES LIFEPATH TARGET DATE 2045 ETF","start_time":0,"source_url":"https://www.cityam.com/ask-the-expert-how-do-i-avoid-double-tax-on-my-pension/","article_id":"2657971755","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/02/014.Marianna-Hunt-Y-SQ-1.jpg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/ask-the-expert-how-do-i-avoid-double-tax-on-my-pension/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2657971755","pubTimestamp":1785906000,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Marianna Hunt is back to answer your burning personal finance questions Got a question for our expert?Email asktheexpert@cityam.comFidelity personal financial specialist Marianna Hunt is back on hand to answer your burning questions, and today a reader is looking to avoid the incoming double tax blow.Q: I’m hoping to retire soon and am just deciding where I will draw my income from. I had previously planned to save my Self-Invested Personal Pension  as a gift for my two children after my death. Would it now be better to slowly withdraw my SIPP and invest it in ISAs to avoid the double tax on my death?A: It’s generous of you to want to pass on your pension to your children. When you say “would it now be better”, you’re referring to the fact that, from April 2027, most pensions will, for the first time, be counted as part of your estatefor inheritance tax purposes.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ITDE":"ISHARES LIFEPATH TARGET DATE 2045 ETF","BK4218":"酒店及度假村房地产信托","BK4181":"酒店及度假村房地产投资信托","IHT":"InnSuites Hospitality Trust"},"translate_title":"请教专家：如何避免养老金双重征税？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IHT":1,"ITDE":1.5},"content_text":"Marianna Hunt is back to answer your burning personal finance questions Got a question for our expert? Email asktheexpert@cityam.comFidelity personal financial specialist Marianna Hunt is back on hand to answer your burning questions, and today a reader is looking to avoid the incoming double tax blow.Q: I’m hoping to retire soon and am just deciding where I will draw my income from. I had previously planned to save my Self-Invested Personal Pension (SIPP) as a gift for my two children after my death. Would it now be better to slowly withdraw my SIPP and invest it in ISAs to avoid the double tax on my death?A: It’s generous of you to want to pass on your pension to your children. When you say “would it now be better”, you’re referring to the fact that, from April 2027, most pensions will, for the first time, be counted as part of your estate for inheritance tax (IHT) purposes.\n\nUntil now, many retirees with surplus wealth have chosen to leave their pension untouched so it can be passed on tax-efficiently. Once the proposed changes come into force, that benefit is likely to be reduced for many people, meaning estate plans may need to be reconsidered.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nAs you suggest, the same pension wealth could, in some cases, be subject to both IHT and income tax. Income tax may apply if the pension holder dies after the age of 75, with beneficiaries, those inheriting the pension, taxed at their marginal rate. If death occurs before age 75, income tax is not usually due.Where both taxes apply, the combined tax rate could exceed 60 per cent in some cases.If your estate is likely to face an IHT bill, withdrawing money from the SIPP gradually and moving it into an ISA could reduce or even eliminate the income tax your children would otherwise pay after inheriting those funds.\n\nMoney held in an ISA still counts towards your estate for IHT. But, unlike inherited pension income, your beneficiaries won’t normally pay income tax on the money they inherit from the ISA.SIPP considerationsThe key question is what effect those withdrawals would have on your own tax bill. Could those withdrawals from your SIPP push you into a higher tax bracket?Also, depending on the size of your SIPP, it may take a while to transfer the money into an ISA. You can only put up to £20,000 per year into an ISA – or up to £40,000 per year between you if you have a partner. What’s more, from next April, the Government is planning to limit how much you can save into a cash ISA to £12,000 per year (with an exemption for those aged over 65).","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.49.0","shortVersion":"4.49.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2657971755","isCrawlerRequest":true}