Dependants' drawdown tax charge quirk scrapped

Talbot and Muir head of pensions technical Claire Trott explained since death benefit changes were introduced children who are deemed ‘dependant' have faced a problem. "When they reached the age of 23 they had to cease income or pay additional charges to access the funds after this age." The government has today pledged to change the situation in the Finance Bill. It said the changes would mean the 23-year-old would "not have tax charges of up to 70% on any payments received from that date, and aligns their tax treatment with that of a nominee of the member". Trott (pictured) said:...