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Labour demands more Treasury details on end of pensions ‘death tax’

Labour shadow Treasury financial Secretary Cathy Jamieson has written to Chancellor George Osborne asking for more details on which products are included in the abolition of the pensions “death tax” after criticising the “shambolic” announcement earlier this month.

At the Conservative party conference, Osborne revealed he would be scrapping the 55 per cent charge on pension funds payable on death.

But inaccurate and incomplete Treasury documents created confusion over whether annuities were included and some annuity provider share prices dropped as a result.

Eventually Money Marketing was told value-protected annuities would be included in the abolition as well as drawdown products.

In a letter to the Chancellor, Jamieson says: “I am sure you will agree that confusion over which pensions are covered by these reforms is not helpful to either pension providers or pension scheme holders.

“I would therefore be grateful if you could provide me with a comprehensive list of all the pension funds that will be covered by the removal of the 55 per cent rate of tax on pension funds at death.

“I would also appreciate it if you could provide any figures the Treasury has produced which show the number of people that will be affected by these reforms, and their projected impact on exchequer revenues.”

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