Pension

PensionI have previously written a very popular blog on this topic here: http://investorprofile.co.uk/what-happens-pension-die

However, the proposed Pension rules changes in April 2015 make important adjustments to the treatment of Pension assets when they are passed on after death. Here we look at the changes proposed:

Now

Die before 75, not taken your Pension – assets passed on tax free.

Die after 75, not taken your Pension – assets taxed at 55%.

Die before 75, taken your Pension – assets taxed at 55%.

Die after 75, taken your Pension – assets taxed at 55%.

 

After 6th April 2015

Die before 75, not taken your Pension – assets passed on tax free.

Die after 75, not taken your Pension – assets taxed at 45% in 2015/16 but at the beneficiary’s income tax rate thereafter.

Die before 75, taken your Pension – assets passed on tax free..

Die after 75, taken your Pension – assets taxed at 45% in 2015/16 but at the beneficiary’s income tax rate thereafter.

 

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on jaskarn@investorprofile.co.uk