Have you paid too much tax on your pension income?

For deaths after 5 April 2018 there is a welcome simplification.  From the date of the account holder’s death they will retain their tax free status.  So there will be no income tax or capital gains tax until the earlier of:

  • Three years from the account holder’s death
  • The administration of the estate being complete
  • Closure of the account

This will also mean that where this is passed to the surviving spouse or civil partner, the additional permitted subscription (additional contribution to an ISA in that tax year)  will be the higher of the value at date of death or value when the account ceases to be a continuing deceased’s account.

This is great news.  Hopefully this might also mean that the holdings can be transferred in specie but we will have to wait and see.  Currently they have to be liquidated.

If you’d like more information on how we can help you, get in touch by emailing us at [email protected] or call us on 01243 782 423.