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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?

    The scheme administrator/trustees will pay the lump sum death benefit in accordance with the direction. The value of the death benefits will normally be counted as part of the estate for inheritance tax on their death. Still not clear? Then let's look at each option in more detail: Option 1: Scheme...

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    Information and guidance

  • Case studies

    ...periods: Transitional rules for DC schemes 2015/16 Pension input periods: Transitional rules for DB schemes 2015/16 Death benefits Death benefits: discretion or direction Death benefits from April 2015 General Parental leave and pensions Overseas Contributions to registered schemes for overseas individuals...

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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

  • Technical central updates

    Jim Grant looks at how the tapered annual allowance could affect your clients with higher incomes. Death benefits: our top five frequently asked questions Aug 27 2018 We’re often asked about death benefits and thought we’d share our top 5 most frequently asked questions. FCA Retirement Outcomes Review...

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    Information and guidance

  • Pensions A to Z

    ...transitional year Child Benefit - avoiding the tax charge Class 3A National Insurance Contributions Compliance and enforcement strategy Contracting out of the State Second Pension Contributions to registered schemes for overseas individuals D Death benefits from April 2015 Death benefits: discretion or direction...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Finance Act 2007

    ...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 benefit to other members of the same registered pension scheme, known as a transfer lump sum death benefit (TLSDB). Since April...

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    Information and guidance

  • HMRC Pension Schemes Newsletters

    ...includes information on the following: the Manage and Register Pension Schemes service relief at source Master Trusts reporting of non-taxable death benefits applications to register a pension scheme Newsletter 101 – July 2018 This includes information on the following: Master Trusts Registering a pension...

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    Information and guidance

  • What is flexi-access drawdown?

    What are the options on death? On the death of the original plan holder, the nominees will have the option to continue FAD as will their successors. The remaining funds can also be paid as a lump sum or be used to buy an annuity. As with all post 6 April 2015 death benefits, it is the age of the plan...

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    Information and guidance

  • July 2015 Budget Summary

    Consultation responses must be received by 30 September 2015. Taxation of lump sums death benefits HMRC - Taxation of lump sum death benefits Currently where someone dies aged 75 or over, tax on lump sum death benefits is 45% for deaths before 5 April 2016.  The Budget confirms that for deaths after 5...

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    Information and guidance

  • June 2010 Budget

    ...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 sum. The way in which those reaching age 75 before next...

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    Information and guidance

  • Information and guidance

    ...allowance works Transfers - frequently asked questions Parental leave and pensions Lifetime allowance explained Overseas transfers Death benefits from April 2015 State benefits, pensions and related manuals Ask a question Ask any burning questions you might have about the world of pensions to our technical...

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    Information and guidance

  • HMRC Pensions Tax Manual

    ...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 the lifetime allowance...

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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

  • Taking benefits

    (A-Day) benefits with low retirement ages. Phased retirement Depending on the type of pension plan, it may be possible to take pension benefits in stages. Who can take their benefits before age 55? Before 6 April 2006 there were a number of occupations where a member could take their benefits from a Personal...

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    Information and guidance

  • 2016 Budget Summary

    ...entitlement of the individual’s beneficiaries to an uncrystallised funds lump sum death benefit under the scheme rules, the full amount will be classed as an authorised payment. A charity lump sum death benefit payable on death before age 75 will receive the same tax treatment whether paid from drawdown pension...

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    Information and guidance

  • Protecting pre 6 April 2006 benefits

    ...member's PLA when benefits are taken. Any amounts in excess of this will be subject to a lifetime allowance charge. Tax-Free Cash Lump Sum (TFC) - If pre 6 April 2006 TFC was less than £375,000 (25% of the LA on 6 April 2006) then the amount payable will be the lesser of 25% of the benefit value and 25%...

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    Information and guidance

  • Trivial lump sums

    ...ignored. All of the benefits under the defined benefits scheme and any in-payment money purchase in-house scheme pension have to be taken at the same time. The member must have some lifetime allowance (LA) available. The total value of all the member's benefits (not just the defined benefits) can't be more...

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    Information and guidance

  • Lifetime allowance charge

    ...charge will apply. Lifetime allowance charge (LAC) The LA creates a ceiling on the benefits value that can be built up by members of registered pension schemes whilst continuing to benefit from tax relief. If the benefits value when they are taken exceeds the LA the difference between the two is subject...

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    Information and guidance

  • Finance Act 2008

    ...vesting date. These members will only build up tax-free cash in respect of post A-Day benefits if they have 'relevant benefit accrual' under the same arrangement. The requirement to check whether 'relevant benefit accrual' has occurred has been removed. This change could be particularly significant for...

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    Information and guidance

  • Pre Budget Report 2007

    ...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 aged 75 or over and there is an increase in pension rights attributable to the death of a member or an unauthorised...

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    Information and guidance

  • Pensions on divorce

    ...least with the scheme trustees, in order to benefit. Any pension benefits will be taxed as belonging to the member. This is particularly onerous if the member is a higher rate taxpayer and the ex-spouse is not. The order may lapse in the event of the member's death or on the remarriage of the non-member spouse...

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    Information and guidance

  • Lifetime allowance explained

    ...dependant's benefits up to the level of the member's pension at date of death and for annual increases of 5%. Any defined benefit scheme that provides better increases can apply to HM Revenue and Customs for a scheme specific valuation factor which can be higher than 20:1.  Defined benefit lump sums are...

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    Information and guidance

  • Pensions tax relief - the new rules

    ...allowance will not apply on death or on serious ill-health. The Government will consider allowing an exemption for ‘major’ ill-health. No exemption in the year benefits are taken, on redundancy or for those who have claimed enhanced protection. Valuing defined benefits Defined benefit accruals will be valued...

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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

  • Pension protection

    ...protect existing benefits. Protecting benefits It was possible for members of pension schemes set up before 6 April 2006 to protect the benefits that they already had. There were 2 types of protection - primary protection and enhanced protection. Protecting pre 6 April 2006 benefits Protecting tax-free...

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    Information and guidance

  • Protection of scheme specific tax-free lump sum

    ...same for money purchase and defined benefits schemes but how it is applied in practice is different. The different calculations are explained below. Money purchase schemes This is calculated in 2 parts, the pre 6 April 2006 benefits and the post 6 April 2006 benefits.  The first part of the formula is...

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    Information and guidance

  • Child Benefit - avoiding the tax charge

    ...training courses. Case study Gov.uk - Child benefit Gov.uk - Child benefit tax charge If income is between £50,000 and £60,000, the charge is a proportion of the Child Benefit received. If it's over £60,000, the amount of the charge is the same as the Child Benefit received. We explain below how to reduce...

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    Information and guidance

  • Tax-free cash protection on transfer

    ...tax-free cash was less than 25% of the lifetime allowance (< £375,000), the amount of tax-free cash available is 25% of the benefits value up to 25% of the lifetime allowance when benefits are taken. In other words, primary protection doesn't apply to the tax-free cash. If on the 5 April 2006 their entitlement...

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    Information and guidance

  • Winding-up lump sums

    ...is not more than £18,000. After the lump sum payment the member has no benefit rights left in that scheme. The employer is not making contributions under any other registered pension scheme in respect of the member, and the employer agrees not to make any contributions during the period of one year from...

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    Information and guidance

  • Overseas transfers

    ...overcome before HMRC will recognise it as a QROPS. The conditions a QROPS must meet are: The scheme must be a pension scheme, providing benefits in the event of retirement or death. It must be an overseas pension scheme and a recognised overseas pension scheme and finally it must be a qualifying recognised overseas...

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    Information and guidance

  • Autumn Statement 2014

    ...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 on. Here's our take on them, with...

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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

    ...contributions in the interim. Pension Credit - Capital Disregard The capital disregard in Pension Credit, and pensioner-related Housing and Council Tax Benefit, is to be increased from £6,000 to £10,000 in November 2009. The information provided is based on our current understanding of the Budget 2009 and...

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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

    ...value of the member's benefits was more than the value the scheme administrator thought they had. A benefit the scheme administrator become aware of that they couldn't reasonably have expected to be aware of before. The conditions that have to apply before the additional benefits can be paid out as a...

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    Information and guidance

  • Pension input periods and pension input amounts

    ...periods ending in the tax year in which any of these events happen. A pension input amount calculation for a defined benefit scheme Fred has 34 years of benefits accrued in a defined benefit scheme. The scheme provides a pension of 1/60 of pensionable salary for each year of pensionable service. His pensionable...

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    Information and guidance

  • Pensions sharing on divorce

    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 from any of the above Yes Schemes in which the only benefits are equivalent pension benefits No Basic state pension No...

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    Information and guidance

  • Scheme pays explained

    ...still applies.  How are the pension benefits reduced? Under a money purchase scheme, the fund will be reduced by the amount of the tax charge including any early withdrawal charges which apply. Under a final salary scheme, the scheme will calculate the reduction in benefits.  This reduction would have to...

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    Information and guidance

    News

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