55% pension death tax to be abolished

Following the pension freedoms introduced in the Budget earlier in the year, the government has now announced major changes to the tax treatment of pensions on death.

These changes mean that those people taking income drawdown, or the new flexible access drawdown from April 2015, will be able to be passed on to chosen beneficiaries who can then continue to take income at their own marginal rate of income tax.

Currently, a drawdown pension plan can only be left to dependents to draw income or will pay a lump sum subject to a 55% death tax charge.

To discuss how these change might effect you, or to talk about your retirement planning, call us on 0113 436 0110 or email info@integralfp.co.uk