IHTM17016 - Pensions: examining form IHT409: Boxes 25 to 42

Alternatively secured pensions (ASPs) (IHTM17350) are a type of unsecured pension that was available as an alternative when a requirement to annuitize arose. They are generally not well understood by taxpayers and agents. There is specific legislation that means there is a charge to Inheritance Tax on the funds left in an ASP on a death. This applies for deaths between 6 April 2006 and 5 April 2011.

If any details are given in this section of the IHT409, you should check that the date of death is between 6 April 2006 and 5 April 2011 inclusive. If it is not between these dates, the pension arrangement cannot be an ASP. You should make further enquiries to establish the status of the arrangement, unless it is clear from other information provided. For example, if it is also reported in the lump sum death benefit section.

If box 25 has been answered ‘yes’, check that the deceased's date of birth was between 6 April 1931 and 21 June 1935. The requirement to annuitize at age 75 was removed on 22 June 2010, so the arrangement cannot be an ASP if the date of birth was outside those dates. You should make further enquiries, if necessary, to establish the correct status. If the dates of birth and death are appropriate for an ASP, check that all the relevant information has been included on the form and refer the file to Technical.

If box 33 has been answered ‘yes’ at the first bullet point, check that the original scheme member's date of birth (at box 35) is between 6 April 1931 and 21 June 1935. Where the funds from an ASP (original member) are used to provide a dependant's pension (the deceased), there is no IHT charge when the original member dies. But there is a charge on any funds remaining when the dependant dies or ceases to be a relevant dependant. If the original member’s date of birth was outside those dates, make further enquiries, if necessary, to establish the correct status of the pension scheme. If the dates of birth and death are appropriate for a dependant’s pension fund, check that all the relevant information has been included on the form and refer the file to Technical.

If box 33 has been answered ‘yes’ at the second bullet point, check that the date of birth of the deceased is between 6 April 1931 and 21 June 1935. This relates to an ASP fund derived as a dependant from another person’s pension fund. The arrangement cannot be an ASP if the date of birth was outside those dates. You should make further enquiries if necessary to establish the correct status of the pension scheme. If the dates of birth and death are appropriate for an ASP, check that all the relevant information has been included on the form and refer the file to Technical.