When life assurance leads to a tax charge on pension death benefits
It is not uncommon for beneficiaries and their executors to find that pension benefits are subject to an unexpected lifetime allowance tax charge. This may be due to a pay-out from a death in service scheme, which may seem odd to those who have not yet seen this in practice.
In this Briefing Note we highlight how those potentially affected – higher earners with significant pension assets – should do to avoid this additional tax charge on death.