Taxation of pension death benefits

The death benefits that can now be provided from SSASs and SIPPs are more tax-efficient and available to more classes of beneficiaries following the introduction of the Taxation of Pensions Act 2014 and the Finance Act 2015.

This briefing note summarises the changes to pension death benefits; in particular, the taxation implications underpinning the new rules and an explanation of how drawdown funds can be cascaded down the generations, for example from member to dependant to Successor, or from member to Nominee to Successor.