23 June 2006
HM Revenue & Customs has issued an announcement on a
proposed amendment relating to lump sum death benefits.
Transitional protection from the lifetime allowance and
unauthorised payment charges is given to certain lump death
benefits paid in respect of people who died before 6 April 2006.
One requirement for transitional protection is that the lump sum
death benefit must be paid within 2 years of the member's
death.
Following representations, HMRC has announced that it will be
amending the regulations to allow transitional protection where the
payment is made within 2 years of the date upon which the scheme
could reasonably have known about the member's death.
HMRC says it will apply this change from 6 April 2006.
