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You searched for the term death benefits Your search returned the following 40 results...
 
  • Death benefits

    Death benefits Death benefit provision within pension schemes can be complex. This analysis focuses on death benefits both before and after retirement and the range of options available under each situation. Death benefits from April 2015 Death benefits: discretion or direction Death benefits: discretion...

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    Information and guidance

  • Death benefits from April 2015

    Death benefits from April 2015 Major changes to the tax charges that apply to benefits paid on the death of a pension scheme member took effect from 6 April 2015. Key facts Major changes to the tax charges on death benefits paid from drawdown pensions and annuities took effect from 6 April 2015. Drawdown...

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    Information and guidance

  • Death benefits: discretion or direction?

    Death benefits: discretion or direction? It's a question we are asked often and because the decision could result in additional inheritance tax liabilities, we felt it was worthy of explanation. The wrong direction? Question: What's the difference between direction and discretion when it comes to paying...

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    Information and guidance

  • Case studies

    Often a case study can help bring a technical point to life. Here are our most popular pensions related articles that contain examples/case studies. Benefit options Emergency tax and lump sum withdrawals Lifetime allowance charge Protecting pre 6 April 2006 benefits Protection of scheme specific tax-free...

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    Pension freedom

    Auto enrolment

    Information and guidance

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  • Death benefits pre 6 April 2015 overview

    Death benefits pre-6 April 2015 overview The rules applying to death benefit provision changed dramatically on 6 April 2015.  This article details the rules prior to that date. Key points There were a number of factors which affected death benefit provision on the member's death. These included: whether...

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    Information and guidance

  • Pensions A to Z

    ...pension schemes B Basic State Pension C Capped income drawdown and review dates Carry forward Carry forward in the 2015-16 transitional year Child Benefit - avoiding the tax charge Class 3A National Insurance Contributions Compliance and enforcement strategy Contracting out of the State Second Pension...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Technical central updates

    Technical central updates Death benefits - discretion or direction Jun 28 2018 Jim Grant considers the impact of different approaches to nominating beneficiaries for death benefits. Saving for future generations: part two Jun 28 2018 Following on from last month's article on how your clients can save...

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    Information and guidance

  • Finance Act 2007

    ...minimum income in a pension year the balance between the minimum income and the income taken will be taxed at 40%. Changes have also been made to the death benefits of someone in alternatively secured pension when they die. One of the options that was available from A-Day was the payment of a lump sum death...

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    Information and guidance

  • What is flexi-access drawdown?

    ...amount of income that can be taken. The money purchase annual allowance limits the amount of future pension savings that can be made. PTM062730: Member benefits:flexi-access drawdown  Who can use flexi-access drawdown?  FAD is only available from plans or arrangements if the scheme rules allow. The normal...

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    Information and guidance

  • July 2015 Budget Summary

    000 where a family home is being passed on.  There is no inheritance tax on transfers to spouses or civil partners, so no inheritance tax applies on death where assets are passed on to the surviving spouse/civil partner.  The ‘unused’ inheritance tax threshold on that first death can be passed on to the...

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    Information and guidance

  • HMRC Pension Schemes Newsletters

    Relief at source for Scottish Income Tax Pension flexibility payments and Scottish Income Tax Trust Registration Service Reporting of non-taxable death benefits Pension schemes Manage and Register Pension Schemes service newsletter - April 2018 This includes information on the following: Introduction Phase...

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    Information and guidance

  • June 2010 Budget

    ...value over time and will particularly help pensioners on low incomes. No compulsory annuity purchase at age 75 Flexibility on when to take pension benefits is a welcome development. It will be interesting to see whether that flexibility will also extend to death benefits and the taking of tax-free lump...

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    Information and guidance

  • Information and guidance

    Overseas transfers Tapering of annual allowance for high incomes - adjusted and threshold incomes Examples of how the tapered annual allowance works Death benefits from April 2015 Individual protection Parental leave and pensions Ask a question Ask any burning questions you might have about the world of pensions...

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    Information and guidance

  • HMRC Pensions Tax Manual

    General principles: contents PTM030000 Registration: contents PTM040000 Contributions: contents PTM050000 Annual allowance: contents PTM060000 Member benefits: contents PTM070000 Death benefits: contents PTM080000 The lifetime allowance and the lifetime allowance charge: contents PTM090000 Protection from...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Budgets and Acts

    ...threshold Reduction in annual allowance - taper on high incomes and the alignment of PIPs Consultation on pension tax relief Taxation of lump sum death benefits Lifetime allowance - reducing to £1 million Salary exchange - government to monitor its use Pension transfers - consultation Pension Wise - extending...

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    Information and guidance

  • 2016 Budget Summary

    ...shiny new initiative could undermine the huge progress which has just been made in ensuring young workers have savings for retirement. For a defined benefit perspective Royal London Consulting Actuaries give their view on the 2016 Budget. Here’s our summary of the proposed changes with links to Treasury...

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    Information and guidance

  • Taking benefits

    Taking benefits The main purpose of a pension plan is to provide you with an income when you reach a certain age and would like your retirement benefits. Key facts The normal minimum pension age is 55. It is possible in certain circumstances to retire before age 55. It may be possible, depending on the...

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    Information and guidance

  • Pensions on divorce

    ...primarily because solicitors are unlikely to be qualified to advise their clients on the most suitable plan to receive their newly-acquired pensions benefits.  In this section we will address how pension sharing works and the practical steps that can be taken to make the process as smooth as possible. How...

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    Information and guidance

  • Protecting pre 6 April 2006 benefits

    Protecting pre 6 April 2006 benefits Since 6 April 2006 the amount of pension savings that can be built up in a tax-advantaged environment is based on a lifetime allowance (LA). The maximum amount of tax-free cash that can normally be paid from any type of registered pension scheme is 25% of the benefits...

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    Information and guidance

  • Trivial lump sums

    Trivial lump sums In certain circumstances it is possible for a member of a defined benefits pension scheme to take all of their benefits as a one off lump sum using the trivial lump sum rules. When a member reaches the age of 55, or earlier if they meet the ill health condition or have a protected pension...

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    Information and guidance

  • Finance Act 2008

    Act includes: Pre A-Day protection of tax-free cash This affects any member with an entitlement to more than 25% tax-free cash on their pre A-Day benefits. This will mainly affect members in occupational pension schemes (including section 32s), but it can also include members of personal pension or stakeholder...

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    Information and guidance

  • Pre Budget Report 2007

    ...dependant's annuity, dies; and a connected person becomes entitled to an increase in their pension rights under the scheme that is attributable to that death c) impose an inheritance tax charge if a member with a scheme pension, a lifetime annuity, a dependant's scheme pension or a dependant's annuity dies...

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    Information and guidance

  • Lifetime allowance charge

    Lifetime allowance charge Anyone who has pension benefits with a value in excess of the lifetime allowance (LA) will be subject to a tax charge on their excess benefits value known as the lifetime allowance charge. Key facts The lifetime allowance is the maximum value of benefits that can be taken from...

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    Information and guidance

  • Pensions tax relief - the new rules

    ...facts Annual allowance £50,000 from April 2011. Can carry forward from previous three years. Annual allowance exemption in final year gone. Defined benefits valued using factor of 16. Tax relief stays at full marginal rate. Lifetime allowance £1.5 million from April 2012. Triviality limit fixed at £18...

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    Information and guidance

  • Lifetime allowance explained

    ...lifetime allowance will be subject to a tax charge known as the lifetime allowance charge. Key facts The lifetime allowance is the maximum value of benefits that can be taken from a registered pension scheme without being subject to the lifetime allowance charge. It may be possible to protect benefits...

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    Information and guidance

  • Benefit options

    Benefit options The main purpose of a pension is to provide a member with an income when they reach a certain age and would like their retirement benefits. There are different options available depending on their circumstances. The basics This analysis focuses on when benefits can be taken, summarises...

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    Information and guidance

  • Winding-up lump sums

    Winding-up lump sums In certain circumstances it is possible for a member of a registered pension scheme to take all of their benefits as a one off lump sum using the winding-up lump sum rules. Key facts Unlike the trivial lump sum payments at retirement, there is no minimum age before the benefits can...

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    Information and guidance

  • Tax-free cash protection on transfer

    ...pension schemes, section 32 buy-out policies or deferred annuity contracts have an entitlement to more than 25% of their pre 6 April 2006 (A-Day) benefits value as tax-free cash. This can be lost on transfer. Key facts Tax-free cash protection is lost on transfer unless: it's a block (or buddy) transfer...

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    Information and guidance

  • Protection of scheme specific tax-free lump sum

    ...lump sum Members who didn't opt for transitional protection (i.e. primary or enhanced protection) but who had the right to more than 25% of their benefits value at 5 April 2006 as a tax-free lump sum may still have the higher percentage paid when they take their benefits. This is called scheme specific...

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    Information and guidance

  • Pension protection

    Pension protection Lifetime allowance protection It is currently possible to protect benefits from a lifetime allowance charge as a result of the lifetime allowance being reduced (which the Government like to do quite often). This protection has the effect of locking the lifetime allowance at a certain...

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    Information and guidance

  • Overseas transfers

    Guernsey and the Isle of Man are treated as being overseas.  HMRC's starting point is that it doesn't want pension funds which have enjoyed UK tax benefits to be able to be transferred to overseas schemes which don't have the same restrictions.  However, rather than ban overseas transfers altogether or...

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    Information and guidance

  • Child Benefit - avoiding the tax charge

    Child Benefit - avoiding the tax charge Since 7 January 2013, an income tax charge applies to people who get Child Benefit and whose income (or partner's income) is more than £50,000 in a tax year. Key facts Child benefit for 2018/19: Higher rate (for the eldest child) £20.70 per week. Lower rate (for...

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    Information and guidance

  • Autumn Statement 2014

    We welcome the fact that no further significant changes have been made that affect the pensions industry. The abolition of tax on annuities paid on death brings them into line with flexi-access drawdown funds paid on death.    However there are various parts of the Statement that are worth commenting...

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    Information and guidance

  • Class 3A National Insurance Contributions

    April 2016. They must have an entitlement to a UK State Pension (either basic or additional state pension). It will increase in line with prices. On death it will provide a 50% pension to a surviving spouse/civil partner. The new scheme started on 12 October 2015 and it allows individuals who reached their...

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    Information and guidance

  • 2009 Budget Summary

    Contracted-Out Money Purchase Contribution Rates National Insurance Contracted-Out Salary Related Contribution Rates Low and Secondary Earnings Thresholds Benefits Basic State Pension Statutory Sick Pay Incapacity Benefits Pension Credit The major news for pensions is the restriction of higher rate tax relief...

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    Information and guidance

  • Autumn Statement 2015

    ...provisions to ensure that inheritance tax will not be levied when a pension scheme member puts funds into drawdown but doesn’t draw all of the funds before death. This will be backdated to apply to deaths on or after 6 April 2011.  No further detail on this change is available at the moment. Secondary market...

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    Information and guidance

  • Small lump sums

    ...accretion You will probably be asking yourself 'what does relevant accretion mean?' This typical piece of HMRC-speak refers to unexpected additional benefits that have arisen because of a belated payment received by a scheme or where a member's rights are found to be greater than was first thought. Relevant...

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    Information and guidance

  • Pension input periods and pension input amounts

    July 2015 Rules) Key facts 2015/16 annual allowance is £40,000 Pension input period: This is the period of time used to measure contributions paid/benefits accrued for testing against the annual allowance. The annual allowance used is the one that's in force at the end of the pension input period - a...

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    Information and guidance

  • Pensions sharing on divorce

    ...pension schemes Yes S.32 policies Yes Retirement annuity contracts Yes Statutory pension schemes Yes Free-standing AVCs Yes Employer financed retirement benefit schemes - unapproved schemes Yes Contracted-out benefits, State Second Pension (S2P) and State Earnings Related Pension (SERPS) Yes Pensions in payment...

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    Information and guidance

  • Scheme pays explained

    ...allowance (AA) and an AA tax charge is due, they can ask their pension scheme to pay the charge on their behalf with a corresponding reduction in benefits. The pension scheme is only obliged to facilitate the payment of the charge if certain conditions apply. What are the conditions? The pension scheme...

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    Information and guidance

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