Pension death benefits
Pension death benefits will, as anticipated, be completely tax-free on death before the age of 75. For clients who die after age 75 the treatment is different but, broadly speaking, any withdrawals will be taxed at the recipient's marginal rate and there's no minimum age.
Annuity death benefits
The announcement on annuity death benefits was welcome, and means the treatment of pension annuities will be the same as income drawdown. This will come into effect where annuity payments are made for the first time after April 2015, when the payments will be tax-free. It is not retrospective.
Tax relief on pension contributions
We anticipated some changes to the tax relief on pension contributions, but this never materialised. Currently, pension contributions quality for tax relief at the marginal rate and it is welcomed that this will continue.
If you need any advice about your pension, please contact our Wealth Management team on the details below.