Inheritance tax implications - difference between DB and DC pension schemes

[Pandersmum]

Can someone please explain to me (simply) the impact of yesterdays budget on the tax implications on the inheritance of pensions and the difference between ‘defined contribution’ pensions where your build your own pot to provide a pension and a ‘defined benefit’ where you don’t own a pot, but get a guaranteed pension value.

Does the change make defined benefit pensions even more valuable to the the recipient than before?

Wouldn't matter if they were run by private companies (as indeed some elements of the public sector are eg subcontracting waste disposal services) - a public sector of some sort is still required to collect and adminster funding ie taxation for the services.

@SheilaFentiman Well yes. We do have some notable failures (Thames Water) so we need to be much sharper on who the main shareholders are and these companies can get sold to foreign shareholders which means they might not act in our interests. So there are dangers. It’s probably better to give contracts but sometimes those awarding the contracts are naive. Monitoring and penalties for not performing are often weak. However private companies can perform very well and yet people are scared of them as they dare to make money to reinvest. I will be interested to see if Labour can reform anything without widespread strikes and continuing poor performance in the public sector. If the private sector was as bad, we would never get any growth at all and productivity would be a minus.

?? The funding would still come from taxation though, unless you’re proposing an end to publicly funded healthcare, education etc.

That’s not what I said. I said privately operated services were not desirable but possible. The funding does not have to purely come from taxation either. We are wedded to a huge public sector in the UK. Other countries take a different view. There is a massive disconnect between service users and costs in this country. Some countries have lower taxation but give citizens more choice by allowing them to choose service provider. We don’t like that and head towards high taxation and certainly poor service and productivity.

"Some countries have lower taxation but give citizens more choice by allowing them to choose service provider"

And those countries still have a public sector, even if it is smaller.

This argument started because a PP claimed it was possible not to have a public sector. I think this is nonsensical. However, it's pointless to keep saying so and it isn't what the thread is about, so I will leave it there.