PSI6.2.4 - Total Benefits On Retirement At
Normal Retirement Age: Life Cover after Retirement - Revenue
Concern
-
(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
Where continued life cover is provided in circumstances
other than those described in
PSI6.2.2(a) or
PSI6.2.3, our practice equates the
situation to that where the employee, having retired, uses his or
her lump sum to purchase personal life cover. There are thus three
aspects of continued life cover which concern us:
- that a member's total retirement benefits
do not exceed Revenue approvable limits (see
PSI6.2.5-7),
- whether the Life Office should refer the
premiums paid in respect of continued life cover to pension
business (see PSI6.2.10 and
PSI6.2.13), and
- that Inheritance Tax (IHT) is not avoided
through discretionary distribution of the lump sum death benefit
from the cover (see
PSI6.2.11-12).
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