Inheritance tax estate report - SIPP which section/category

CJ1981UK

Hello,

Hopefully someone will be able to clarify. I'm filling the Inheritance tax estate report online and struggling to understand which category a SIPP would be included under. The SIPP in question is purely stock and shares with Hargreaves Lansdown. I don't believe this has an affect on the above, but for completeness the will states the SIPP is to be divided and transferred to the children.

The sections within the HMRC online form where I believe I could declare the SIPP as are- 'Private Pensions', 'Stocks and Shares', 'Assets held in trust', or 'any other assets not listed'.

Not sure if I'm under or over thinking, but any help greatly appreciated to understand which section to apply.

Many thanks,

Colin

Marcon

CJ1981UK said:

Hello,

Hopefully someone will be able to clarify. I'm filling the Inheritance tax estate report online and struggling to understand which category a SIPP would be included under. The SIPP in question is purely stock and shares with Hargreaves Lansdown. I don't believe this has an affect on the above, but for completeness the will states the SIPP is to be divided and transferred to the children.

The sections within the HMRC online form where I believe I could declare the SIPP as are- 'Private Pensions', 'Stocks and Shares', 'Assets held in trust', or 'any other assets not listed'.

Not sure if I'm under or over thinking, but any help greatly appreciated to understand which section to apply.

Many thanks,

Colin

A SIPP wouldn't normally be included as part of the estate. Assuming you're the executor, have you checked with HL if they have an Expression of Wish Form (aka as a Nomination Form) in relation to the SIPP and what's happening/has happened to the funds? More info here: https://www.hl.co.uk/news/articles/archive/how-to-pass-on-pension-wealth

The SIPP would normally only need to be declared if the estate has a right to receive the funds, in which case it would be potentially subject to IHT. If the individual transferred their funds from another pension arrangement within two years of their death, that can be an (unwelcome) special case - does that apply here?

If the person who has died specified that they want the SIPP paid to their estate (perfectly possible unless the rules of a particular SIPP specify otherwise), and it is paid at the discretion of the SIPP provider (i.e. the request wasn't binding), then you can carry out the wishes of the deceased and there is normally no IHT payable.

If, on the other hand, the SIPP provider chooses to follow an Expression of Wish Form which says something else, you won't be able to carry out that part of the will - so worth ensuring they know what the will says.

Sorry for a rather longer and more complicated answer than the yes/no/try section X you were doubtless hoping for!