IFAs concerned over proposed pension death benefits tax rule changes

IFAs cite ‘impact on clients’ financial plans’ as reason for apprehension

Sahar Nazir
clock • 2 min read

The majority of IFAs are apprehensive about potential alterations to pension death benefits tax rules proposed by the government as it will “impact clients’ financial plans”, according to Standard Life.

Just over one in ten advisers have expressed support for the changes. This is according to a study conducted among 207 IFAs from 10 to 15 August 2023. Currently, if a pension owner passes away before the age of 75, their pension is passed on tax-free to nominated beneficiaries. If the pension owner is older at the time of their passing, the pension is taxed at the beneficiaries' marginal rate. However, the proposed alterations would require nominated beneficiaries to receive the pension either as a lump sum outside of a pension wrapper or as an income, taxable at their marginal rate. ...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Majority of IFAs 'concerned' about artificial intelligence

Majority of IFAs 'concerned' about artificial intelligence

Three in five believe regulations on use of AI tools should be made stricter

Sahar Nazir
clock 08 December 2023 • 2 min read
Model portfolio services outperform adviser platform market

Model portfolio services outperform adviser platform market

NextWealth says 41% of advisers expect to increase MPS use next year

Sahar Nazir
clock 08 December 2023 • 1 min read
PA Working Lunches: Register today to hear from Schroders

PA Working Lunches: Register today to hear from Schroders

Join us for an informative session worth one hour of CPD

Professional Adviser
clock 08 December 2023 • 1 min read