The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
On the death of a scheme member or a beneficiary, a registered pension scheme is only authorised to pay out benefits to a beneficiary following the death 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 the benefits are being paid from.
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’.
Where a member of a defined contribution scheme died before taking benefits death benefits under the rules applicable until 5 April 2015 could be paid as:
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login