Draft legislation which clarifies the position on joint life annuities and guarantee payments, as well as tax treatment on deaths prior to age 75 has been released by HM Revenue & Customs (HMRC).
The changes were first announced by the Chancellor in last year's Autumn Statement. HMRC released the draft Finance Bill legislation and draft explanatory notes in a technical consultation. It said the changes in the draft legislation are "intended to provide that payments of annuities to beneficiaries can be made tax free on the death of an individual, subject to certain conditions". It added the changes broadly mirror those made previously by the Taxation of Pensions Act 2014 in respect of drawdown funds. Talbot and Muir head of technical support Claire Trott said: "I feel it ...
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