This tax information and impact note affects beneficiaries of people who have died with pension savings in a registered pension scheme or non-UK pension scheme.



A change is being made to the pensions tax rules to reduce the tax charge that applies to taxable lump sum death benefits paid from registered pension schemes or non-UK pension schemes.This measure makes the tax system fairer by reducing the rate of tax payable on taxable lump sum death benefits from 45% to the recipient’s marginal rate of Income Tax.