Govt should scrap 55% pension death tax charge - Standard Life

The provider said the 55% charge should be overhauled to make it "clearer, simpler and fairer". The call follows sweeping changes to pensions announced in the Budget. The government has already acknowledged the charge is too high in many cases. It made the statement in its consultation paper, Freedom and Choice in Pensions. Standard Life explained the 55% death benefit tax charge applies in two situations where a lump sum is paid out, most commonly with a self-invested personal pension. It is paid where a person dies aged 75 plus, it applies to the whole fund, regardless of whether...