When I die, is it true that the UK will charge a 55% tax on my pension when it passes to my beneficiaries?
27 March, 2017
No. As part of the UK’s pension flexibilities introduced in April 2015, the UK’s 55% death tax that used to apply in certain circumstances was abolished.
Now, if you die before the age of 75 no UK tax charge will apply when your beneficiaries take a lump sum or draw an income from your pension, even if you had already drawn from your pension. If you die after age 75, your beneficiaries could draw pension income or take a one-off lump sum subject to applicable income tax.