Policy News Journal - 2014-15

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Draft legislation: pension flexibility – annuities

20 February 2015

Draft legislation has been published on changes to the taxation of annuities paid to beneficiaries as announced in Autumn Statement 2014.

HM Revenue and Customs has published draft Finance Bill legislation and draft explanatory notes for a technical consultation. The changes in the draft legislation are intended to provide that payments of annuities to beneficiaries can be made tax free on the death of an individual, subject to certain conditions.

The changes broadly mirror those made previously by the Taxation of Pensions Act 2014 in respect of drawdown funds.

Comments on the drafts should be sent by email to pensions.policy@hmrc.gsi.gov.uk by 4 March 2015.

HMRC Pension Newsletter 67

20 February 2015

The February 2015 issue of the HMRC newsletter for pension schemes is now published. It provides more details on how payments made under the pension flexibility rules will work in practice. The December 2014 Pension Newsletter 66 provided guidance and answers to some of the questions received about how PAYE will operate for payments taken under the pension flexibility rules. Following publication of Newsletter 66, a number of follow up queries from pension scheme administrators were received. This newsletter aims to address some of the additional points raised and provide more detail on operating PAYE on payments made under the pension flexibility rules.

Pension Newsletter 67

CIPP Policy News Journal

08/04/2015, Page 426 of 521

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