Pension lump sum on death - Taxable?

dan.date66

Could we not be talking about a five year guarantee here? A lot of private pensions are guaranteed for five years, and as in this case the pension was in payment, could the lump sum be just the capitalising of remaining payments? If so, there could be income tax due (pension income is taxable), but I would suggest a simple letter to the insurer/scheme provider to ascertain what the payment actually is first.

MajorTom_2

Thanks for all the responses guys and sorry for not replying sooner.
I did speak with the pension company and the amount on the letter is after tax, so the actual amount is over £20k! Thank you Mr Osborne!

dazzadub

i thought pension payments to a spouse or next of kin was subject of no tax.
because you inherit the amount in question, im currently looking at this at the moment for my FIL, and all pensions etc are paid direct to him with no tax applied due to the inheritance aspect of it

greyteam1959

I personally would be seeking some specialist advice on this subject.
A few hundreds pounds spent could save you a lot of money !!