½Û×ÓÊÓƵ

Defined contribution schemes and cascading death benefits

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Defined contribution schemes and cascading death benefits

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Introduction

The amendments introduced in the Taxation of Pensions Act 2014 provide that a dependant can receive a dependants’ flexi-access drawdown pension, a nominee can receive a nominees’ flexi-access drawdown pension and a successor, a successors’ flexi-access drawdown pension.

The operation of flexi-access drawdown means that a successor or nominee can take as much as or as little income from the fund as they wish. They could literally take zero or equally literally take all of it in one go. Tax considerations may determine the choice made as much as need.

Thus we are seeing radical changes about who is able to inherit defined contribution pension funds.

Cascading pensions wealth

The ability to pass on pension wealth after death from one person to another is indefinite, at least as long as there remains a pension fund with a value.

The nominated beneficiary can nominate their own successor who will take over the fund following their death. As a successor can now nominate a further successor,

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
  • 22 Oct 2024 09:12

Popular Articles

Company cars

Company carsIntroductionCompany cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation. Detailed guidance on each of the following

14 Jul 2020 11:15 | Produced by Tolley Read more Read more

Married couple’s allowance

Married couple’s allowanceThe married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.There

14 Jul 2020 12:13 | Produced by Tolley Read more Read more

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more Read more