½Û×ÓÊÓƵ

Death benefits from a defined benefit pension scheme

Produced by in association with John Hayward
Employment Tax
Guidance

Death benefits from a defined benefit pension scheme

Produced by in association with John Hayward
Employment Tax
Guidance
imgtext

Introduction

On the death of a scheme member or a beneficiary, a registered pension scheme is only authorised to pay out benefits to a beneficiary either as a pension death benefit or as a lump sum death benefit.

The type of benefits paid will depend on the scheme rules and the type of arrangement from which the benefits are being paid.

As with the payment of benefits in a member’s lifetime, the legislation sets out the authorised forms of pension and lump sum death benefits that may be paid following a member’s death, the circumstances in which those benefits can be paid, and the conditions and restrictions that the payments of the benefits must meet or follow in order for them to be authorised.

These are referred to in the legislation as ‘the pension death benefit rules’ and ‘the lump sum death benefit rules’.

For the taxation of pension benefits, see the Pension income and lump sum allowances from 6 April 2024 guidance note. See also Simon’s Taxes, E7.239 and E7.239A.

Lump

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 31 Oct 2024 08:50

Popular Articles

Settlor-interested trusts

Settlor-interested trustsWhat is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor

14 Jul 2020 13:38 | Produced by Tolley Read more Read more

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more Read more