Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Beneficiaries of tax exempt pension benefits to be extended

Source: HM Revenue & Customs | | 10/07/2018

The draft Finance Bill includes a new measure that will help modernise the tax treatment of employer paid premiums for the provision of death in service life assurance products for their employees. 

Currently, these premiums are only tax-exempt if the named beneficiary is a member of the employee’s family, or a member of their household. This includes the employee's spouse or civil partner, parents, children and members of the employee’s household (such as domestic staff). As the law stands, if the beneficiary is not a member of the employee’s family or household, the premiums paid by the employer are treated as a taxable benefit in kind.

This new measure will see the tax exemption modernised and extended to include any individual or registered charity as a beneficiary. The inclusion of registered charities is in line with the government's policy of providing tax relief on charitable donations and has been welcomed by the charity sector.

The changes will also apply to employer contributions to qualifying recognised overseas pension schemes (QROPS). The government has said that these changes are being made to ensure the tax system remains relevant and fair and to reflect societal changes. The new measures are expected to take effect from 6 April 2019.



Search Archive


Latest News

VAT on property service charges
11/12/2018 - More...
A new Revenue and Customs Brief (6-2018) entitled VAT exemption for all domestic service charges has

Are you ready for VAT filing changes April 2019?
11/12/2018 - More...
The introduction of Making Tax Digital (MTD) for VAT is fast approaching. From April 2019, some 1

Is your income approaching £100,000?
11/12/2018 - More...
For high earning taxpayers, the personal allowance is gradually reduced by £1 for every £2 of

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login