Public Bill Committee: Taxation of Pensions Bill: Clause 2 - Restriction and reduction of tax charges on certain lump sums (18 Nov 2014)

David Gauke: I shall be brief. Clause 2 amends chapter 5 of part 4 of the Finance Act 2004 to reduce the special lump-sum death benefits charge from 55% to 45%, which applies to certain lump-sum benefits, and also removes the tax charge altogether on such lump sums when an individual dies under the age of 75. It also reduces the serious ill health lump-sum charge from 55% to 45%. The Committee will note...