Pensions Tax Abolished
The 55 per cent pensions tax charge, levied on pension funds passed on after death is to be abolished, following a statement by George Osborne on 29th September 2014. The change will take effect from the beginning of the new tax year in April 2015.
Currently, if a pension saver is over 75 at the time of their death, their pension fund attracts a 55 per cent tax charge. The new legislation will mean that no tax charge is due, regardless of the pension savers age, as long as the funds are kept within a pension. If the funds are withdrawn only the relevant marginal rate of tax will apply.
The announcement was originally planned for the Autumn Statement which will be delivered on 3rd December 2014.