Part 4: Income tax, corporation tax and capital gains tax Section 22: Pensions: some lump sum death benefits taxed as pension income Summary
This section subjects certain lump sum death benefits to tax as pension income where they are paid out of a registered pension scheme directly to an individual. Tax is deducted under PAYE. This section makes similar provision for equivalent payments made out of foreign pension schemes. This change has effect for lump sum death benefits paid on or after 6 April 2016.