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IHTM17038 | Pensions: IHT exclusions: trust based schemes that are not relevant property

From HM Revenue & Customs · Inheritance Tax Manual

excludes, from the definition of relevant property:

  • registered pension schemes (),

  • qualifying non-UK pension schemes () and

  • section 615(3) scheme ()

This means that these trust based schemes are not liable to the 10 year anniversary charge or the exit charge ().

Before 6 April 2006, the exclusion in referred instead to a fund or scheme to which applied. This section applied to approved pension schemes which automatically became registered pension schemes on that date. It also applied to sponsored superannuation schemes, which are no longer within the definition in . However, schemes which qualified as sponsored superannuation schemes before 6 April 2006 have some retained rights ().

Any other trust based schemes that provide retirement benefits set up on or after 6 April 2006, primarily employer-financed retirement benefit schemes (EFRBS), are relevant property trusts, so they are liable to the 10 year charge and the exit charge (). EFRBS that were established before 6 April 2006 would have been unapproved schemes at that time but would probably have met the definition of a sponsored superannuation scheme, so they may still benefit from treatment ().