Occupational Pensions: Tax Allowances

(asked on 27th February 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the estimated annual cost of providing tax relief to beneficiaries on pension pots inherited before the recipient is 75.


Answered by
John Glen Portrait
John Glen
Economic Secretary (HM Treasury)
This question was answered on 5th March 2020

Since April 2015, individuals were able to pass on their unused defined contribution pension savings up to their Lifetime Allowance to any nominated beneficiary when they die, instead of paying the 55 per cent Income Tax charge which applied to most cases prior to that date.

The Exchequer cost of this change was set out at Autumn Statement 2014. In particular, information has been published on page 46 of the ‘Autumn Statement 2014 policy costings’ document, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/384071/AS2014_policy_costings_final.pdf

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
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4. Finance Bill (First sitting)
17/10/2017 - Public Bill Committees

1: cash equivalent of a benefit in kind is subject to tax and employer national insurance contributions. Making - Speech Link
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3: HMRC to undertake a review of the changes to be made by Clause 2 in advance of their implementation. - Speech Link

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16/01/2018 - Public Bill Committees

1: income tax treatment of armed forces’ accommodation allowances, the bank levy, stamp duty land tax, the - Speech Link
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