Bereaved families will not face a tax bill arising from delays to pension payments under new rules, following concerns that some households could be penalised for circumstances beyond their control.
Campaigners had warned that delays in processing or receiving pension funds could leave families facing an unfair financial burden. The concern centred on situations in which the delay was not caused by the bereaved family but could nevertheless result in additional tax liability.
The new rules are intended to remove that risk and ensure families are not charged because pension payments were delayed. The available information does not set out further details about how the rules will operate or when they will take effect.
The change follows the campaigners’ warnings and is aimed at preventing bereaved households from being disadvantaged by pension delays they were unable to influence.
