Strategy for SIPP upon husband death

Linton

The one gotcha I see in Xylo's reference is that it seems that if the pension was accessed prior to 2015 under capped drawdown then future payments may be taxed.   However  no other website seems to mention this so perhaps I am confused.

nxdmsandkaskdjaqd

Once again thank you all.  I understood that a SIPP could be passed to the spouse tax free, but I didn't appreciate that any withdrawals would be tax free.  That now makes things less complicated.

Kim1965

Very helpful as i am in thesame postion.
So the imherited pension can be taken in installments(income) and is not subject to any sort of tax as is not treated as income against my personal allowance 

Linton

Kim1965 said:

Very helpful as i am in thesame postion.
So the imherited pension can be taken in installments(income) and is not subject to any sort of tax as is not treated as income against my personal allowance 

If the deceased was less than 75 years old, yes.

Albermarle

Linton said:

Kim1965 said:

Very helpful as i am in thesame postion.
So the imherited pension can be taken in installments(income) and is not subject to any sort of tax as is not treated as income against my personal allowance 

If the deceased was less than 75 years old, yes.

Probably worth mentioning that this is one of the many pension death/tax benefits highlighted by the IFS as being 'very generous'
It is quite possible it will be one that will not exist forever, although I would assume any current beneficiary pensions from someone who died before age 75, will still be OK/tax free.

LHW99

I believe there is also a rule about the beneficiary having to claim the pension within 2 years of the original investor's death as well?