Introduction Summary
1.This section and Schedule amend the existing pension tax rules in Part 4 of Finance Act 2004 to allow anyone, including non-dependants, to receive payments from an annuity on the death of a member. The Schedule also amends the Income Tax (Earnings and Pensions) Act 2003 to allow payments of these beneficiaries’ annuities to be tax-free on the death of an individual before age 75. These changes are similar to, and build on those made in the Taxation of Pensions Act 2014 to Finance Act 2004, which were in respect of payments of income withdrawal from a drawdown fund on the death of an individual. The changes in this section and Schedule will have effect on or after 6 April 2015.