Inherited Annuity

DRS1

DullGreyGuy said:

Blythe15 said:

Thanks everyone I've now gone to a Tax Advisor - yes it was a pension annuity which paid out on the passing - the money has been paid out but HMRC are trying to charge more tax when its already been deducted at source 

You still need to clarify what you mean "paid out"? 

Was it just a death benefit? That would normally be £1,000 and intended to be towards funeral expenses etc but can be used however
Did it have a guarantee period and that was still in force?
Presumably the annuity was in payment prior to his passing or was it deferred?

I am only guessing but based on a lump sum being paid out I suspect the annuity had Value Protection as a feature.