Osborne plans cut to pension pot death tax

George Osborne is expected to announce cuts to a so-called 'death tax' which applies to the untouched pension pots of over-75s at this year's Tory conference.

Until now, a 55% tax applied to untouched 'defined contribution' pension pots which belong to those aged 75 and over. It also applied to pensions where money had already been withdrawn. But from April 2015, if a pension saver dies aged over 75, beneficiaries will receive the funds free of tax if they keep them in a pension. If they draw the pension, they will pay their marginal rate of tax. If the person who dies is under 75 there will be no tax. The measure is to be unveiled imminently by the Chancellor at the Conservative Party conference in Birmingham. It was originally due to b...