What is the tax treatment on annuity benefits that are passed to my beneficiaries?

With all the changes to pensions legislation with the 2015 Budget I wanted to know whether anything has changed with regards to passing on your annuity to a beneficiary should you pass away?

Question asked by Thomas Gardner
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Answered by Neil Adams

Following the 2015 Budget announcement, assuming you die before age 75, pension income paid to your spouse or partner via a lifetime annuity with joint-life, value protection or a guaranteed period is now free of income tax.

Note: Death benefits paid from a scheme pension as value protection, a joint-life annuity or as a continuing guarantee period are not tax free. Be sure to check with your scheme provider to find out how this might apply to your annuity benefits.

annuity on death
 
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This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
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