Inheriting Pensions

Rules which will take effect from surrenders made after 9 October 2007 and deaths after 5 April 2008 will introduce taxing provisions affecting:

• Surrender of rights to payments under a lifetime or dependant’s annuity
• A connected person becoming entitled to an increase in their scheme pension rights following, and in consequence of, the death of a member
• A scheme member whose scheme rights are increased by virtue of the death of another scheme member at age 75 or more, or who becomes entitled to an unauthorised lump sum in consequence of that death.

Full details will be included in Finance Bill 2008.