talking of tax...meanwhile in the UK..
A new death levy being considered by the Government could cost grieving widows and widowers an extra £13,000 in tax, our figures reveal.
Last month, HM Revenue & Customs published proposals to start taxing hundreds of thousands of inherited pension pots for the first time.
The reforms would scrap the ability to inherit a pension pot tax free and could come into force as early as next April.
Anyone who earns at least £12,570 a year – the current personal allowance – could face a tax bill when inheriting a pension.
At present, modern defined contribution pensions – where individuals and their employers pay towards a nest egg – can be passed on free of inheritance tax.
The person who inherits is also free to withdraw money from it without paying income tax, so long as the deceased died before the age of 75. If the deceased was over 75, the beneficiary pays income tax on any withdrawals.
The proposals would make all withdrawals subject to income tax – even on pensions passed on by someone under 75.
PUBLISHED:06:51 AEST, 13 August 2023|UPDATED:23:57 AEST, 14 August 2023
(this is money.co.uk.)
