Lump Sum Payments: Widowed People
The question
To ask the Chancellor of the Exchequer, if she will make it her policy to extend the two year limit on the tax free payment of a pension lump sum following the death of a spouse when the withdrawal is delayed by a coroner's investigation.
Answered by Torsten Bell
The Government recognises the distress that bereavement and any subsequent investigations can cause. The two‑year limit for tax‑free pension death benefits is a long‑standing feature that supports prompt payment and consistent administration. The Government keeps all tax policy under review, but has no current plans to amend the existing two‑year limit.
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