Does inherited pension count against the LTA

GoGas

Where a wife inherits a husband's SIPP , which is uncrstallised, on his death if she keeps it as "pension" will it count against her own LTA. Currently she is not over her £1.25m LTA (she has Final salary scheme and SIPP) but the £370k SIPP inheritance wil push her over the limit.

She could inherit it all as "cash" which would be simpler as she does not need another pension but some say say better to use the tax SIPP wrapper but how long does she have to convt to pure cash.

Thanks

GoGas

Think found answer, does not count
http://www.aca.org.uk/files/A_note_from_the_Treasury_setting_out_further_information-3_October_2014-20141003165647.pdf

System

But if the inherited pension continues to grow then presumably it might independently come up against its own separate LTA?

GoGas

Clifford_Pope wrote: »

But if the inherited pension continues to grow then presumably it might independently come up against its own separate LTA?

Good point. I do not know but had assumed that the death of husband was a crystallisation event and as part of probate would have been valued. If the LTA of husband is exceeded (as may be the case her by about £20k) then the 55% tax was payable then. Would seem unfair if there was revaluation later, although know the are complexities around the 75 yrs age when value must not be greater than the value of the initial crystallised fund.

Does lok like possibly taking as "cash" and investing may be better option.