Chancellor abolishes 55% tax on pension funds at death

People with defined contribution pension savings will no longer have to worry about their pension savings being taxed at 55% on death.

The Chancellor today (Monday 29 September) announced that from April 2015 individuals will have the freedom to pass on their unused defined contribution pension to any nominated beneficiary when they die, rather than paying the 55% tax charge which currently applies to pensions passed on at death.