Inherited pension and its tax free status

[Deleted User]

In my case, my husband and I both had sipps in drawdown with the same company. He died under 75 and his whole sipp was transferred into my sipp, my original sipp became tranche 1 and his sipp became tranche 2. Any withdrawals from tranche 2 in my sipp to me are tax free.

I had a great deal of help from sippdeal, they could not do enough to smooth the transfer and withdrawals

Malthusian

Why would you not choose this option?

In case the rules change. If you have an inherited pre-75 drawdown fund from which you can withdraw money tax free, many people would prefer to get it in their own hands while they can, before the Government decides to "bring these plans into line with other pension funds" (i.e. apply income tax).

You would of course then be subject to tax on income and gains, and possibly Inheritance Tax.