Annuities dealt another blow by Osborne's pension 'death tax' cut

The Chancellor’s pension revolution continued as he scrapped the 55% ‘death tax’ at the Tory Party conference, handing drawdown another advantage over annuities

Jenna Towler
clock

The Chancellor's pension revolution continued as he scrapped the 55% ‘death tax' at the Tory Party conference, handing drawdown another advantage over annuities. Jenna Towler gauges industry reaction…

The current 55% tax duty payable when pension funds are passed on after death will be axed under this government, George Osborne told the Conservative Party conference. From April 2015, if a pension saver dies aged over 75, beneficiaries will receive the funds free of tax if they keep them in a pension. If they draw the pension, they will pay their marginal rate of tax. If the person who dies is under 75 there will be no tax. After a politically charged weekend for the Tories, the Chancellor brought forward the announcement originally slated for the Autumn Statement on 3 December. ...

To continue reading this article...

Join Professional Adviser for free

  • 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 Income

Retirees flock to annuities as sales rise almost 40% year-on-year

Retirees flock to annuities as sales rise almost 40% year-on-year

Annuity sales up 38.7% to 80,061 in 2023/24

Jenna Brown
clock 26 September 2024 • 2 min read
Annuity comparison demand among advisers continues to rise

Annuity comparison demand among advisers continues to rise

Popularity of annuities returned as rates increased

Jenna Brown
clock 24 September 2024 • 2 min read
Advisers back annuities as sales continue to rise in H1

Advisers back annuities as sales continue to rise in H1

Annuity sales reach £3.6bn in H1 2024, ABI figures show

Jasmine Urquhart
clock 21 August 2024 • 2 min read