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Bereaved families will not face tax bill over pension delays under new rules

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Core Development: Bereaved families will not face tax bill over pension delays under new rules
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Market & Financial Impact: Campaigners had warned some families could face an unfair financial penalty because of delays which were not their fault.
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Actionable Insight: 🔴 Bearish Risk: Regulatory scrutiny, profit decline, or sell-off risk may create near-term volatility.

Bereaved families will no longer be hit by an unexpected tax bill because of severe delays paying out civil service pensions, following a change in Wednesday's Budget.

Under previous HMRC rules, certain lump sum pension payments had to be paid within two years of the pension scheme being notified of a death to remain tax-free.

Campaigners had warned some families could face an unfair financial penalty because of delays which were not their fault.

The government has now changed the rules so payments will no longer become taxable solely because more than two years has passed.

The Civil Service Pension scheme manages the pensions of 1.7 million public sector workers in the UK.

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Official Publisher Attribution: This report is aggregated from Bloomberg. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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