Consider a wealthy widow(er) pensioner wishing to buy a yacht for £600,000, assuming 50% tax has expired and they pay 40%.
He could draw a million pounds from his pension under flexible drawdown and pay £400k tax or he could borrow the money and let his estate pay it off later.

Scenario 1:
He take the £1M from his pension, pays £400k tax and buys his yacht.
If he were to die straight away he would pay a further 40% IHT on the Yacht of £240k leaving his dependents with a mere £360k or 36% of the oginal £1M drawdown.

If he dies 10 years later and his yacht was worth £300k he would pay £120k extra IHT leaving his dependents with £180k or 18% of the £1M drawdown.

Scenario 2:
He takes out a £600k mortgage, leaves his pension intact and buys his yacht.
If he dies straight away the yacht pays off the mortgage and he has no extra IHT to pay.
His £1M in his pension fund pays 55% tax leaving his dependents with £450k or 45% of the £1M pension fund.
This is £90,000 more, equal to an extra 9% of the £1M pension pot.

If he dies 10 years later and his yacht is worth £300k, he would have £300K less in his estate as the mortgage debt is twice the value of his yacht. Hence the estate pays £120k on the yacht and saves £240k on the IHT on the house. Saving £120k.
His £1M in his pension fund pays 55% tax leaving his dependents with £450k or 45% of the £1M pension fund.
The estate also saves £120k on IHT and has a £300k yacht to sell.
This leaves the estate with £450k + £120k + £300k less £600k mortgage = £270K
This is also £90,000 more, equal to an extra 9% of the £1M pension pot.

With the current 50% tax even more IHT could be avoided with a £1.2M withdrawal being required to fund the same yacht purchase.
Hence: Welcome in the new Flexible Yacht Fund.