News: 55 per cent death tax to be scrapped
First published 01 October 2014 • Updated 23 January 2017
The pensions revolution continues.
George Osborne has announced at the Tory Party conference on Monday that he will be scrapping the 55 per cent ‘death tax’. This comes as part of the new pension reforms revolution, which aims to give future retirees’ and elderly, more control over their accumulated assets.
There are 3 major changes that will tax place from April 2015:
- Beneficiaries of a deceased pension saver over 75 – will receive pension fund tax free, as long as it is kept in a pension.
- If a beneficiary chooses to draw out funds from a carried over pension, a marginal rate of tax will be applied.
- If the pension saver dies under the age of 75, then there will be no tax.
This is great news for pension savers, the new rules allow more control, and less worry about losing funds after death. The announcement has received positive responses. Chief executive of unbiased.co.uk, Karen Barrett praised the new pension reforms in an official statement, encouraging consumers to seek out professional advice.
To discuss more about pensions, speak to an adviser today.
Read the full official statement here.