A Sipps firm has spoken out about the unfairness of aspects of the new rules arising form the scrapping of the so called death tax.

SSAS and Sipps specialist Talbot and Muir said inequalities have emerged in the details after the reforms were announced in late September.
Discussions with advisers and the Treasury have unearthed inconsistencies that will mean those who have already needed income will lose out in the long run, according to Claire Trott, head of technical support at Talbot and Muir.
She believes additional inequalities have been unnecessarily added to the Taxation of Pensions Bill.
Ms Trott, talking about the changes at the AMPS Technical Conference this week, said: "Those who have needed to take an income before 6 April 2015 from their dependants drawdown will continue to be taxed at their marginal rate. However, those that have not needed an income to date will not be taxed at the point they choose to take an income, provided the original member died before age 75. This seemed to me to be an unfair inconsistency but Pensions Policy at HMRC have confirmed this to be the case.
"Unlike the issues with changing and unwinding annuity contracts, this could be easily rectified with an amendment to the Bill, ensuring those who are using death benefits as they were intended, are not penalised."

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Ms Trott added: "This inequality thankfully will not mean that on the death of the dependant they (the dependant) cannot then take advantage of the new rules, passing down to any named beneficiary. The age of the dependent on their death will be the determining factor as to whether or not the income or lump sum will be taxed."
Other issues raised by advisers have included the addition of the new Benefit Crystallisation Event on death of a member with un-crystallised funds.
These were not previously tested against the Lifetime Allowance if they were left as a dependant's drawdown, but now they can be left to any beneficiary, they will be caught and could incur tax charges, that were previously not expected.