Defined contribution schemes and cascading death benefits

By Tolley

The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Defined contribution schemes and cascading death benefits
  • Introduction
  • Cascading pensions wealth
  • Income tax and nominee / successor flexi access drawdown
  • Nominations and control


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 o

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