Pensions Tax Abolished

The 55 per cent pensions tax charge, levied on pension funds passed on after death is to be abolished, following a statement by George Osborne on 29th September 2014. The change will take effect from the beginning of the new tax year in April 2015.

Currently, if a pension saver is over 75 at the time of their death, their pension fund attracts a 55 per cent tax charge. The new legislation will mean that no tax charge is due, regardless of the pension savers age, as long as the funds are kept within a pension. If the funds are withdrawn only the relevant marginal rate of tax will apply.

The announcement was originally planned for the Autumn Statement which will be delivered on 3rd December 2014.

This entry was posted on Wednesday, 1st October 2014 at 8:55 am and is filed under News, Pensions. You can follow any responses to this entry through the RSS 2.0 feed.

Tags: Financial, Planning, Tax