The Chancellor's pension revolution continued as he scrapped the 55% ‘death tax' at the Tory Party conference, handing drawdown another advantage over annuities. Jenna Towler gauges industry reaction…
The current 55% tax duty payable when pension funds are passed on after death will be axed under this government, George Osborne told the Conservative Party conference. From April 2015, if a pension saver dies aged over 75, beneficiaries will receive the funds free of tax if they keep them in a pension. If they draw the pension, they will pay their marginal rate of tax. If the person who dies is under 75 there will be no tax. After a politically charged weekend for the Tories, the Chancellor brought forward the announcement originally slated for the Autumn Statement on 3 December. ...
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