Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Personal pension definition

What does Personal pension mean? A personal pension is an individual, contract-based, defined contribution arrangement that a person sets up with an authorised provider to build a retirement pot. It functions like a money box for the individual: contributions (from the saver and, in some cases, an employer) are invested, and the benefits depend on the amount paid in and investment returns. In the UK, personal pension scheme is a statutory category, distinct from occupational schemes and generally registered for tax purposes under the Finance Act 2004. Common forms include stakeholder pensions and Self-Invested Personal Pensions (SIPPs). Providers and advice are regulated by the FCA; where...

UK taxation of pension death benefits: DB and DC schemes, pre/post-75 rules, LSDBA/SLSDBC, dependants, drawdown and annuities, with proposed inheritance tax changes from 6 April 2027

Published by a LexisNexis Private Client expert

Practice notes

Introduction

This Practice Note considers the taxation of benefits paid from a pension scheme on the death of a member. The outcome chiefly depends on whether the person belonged to a defined benefit (final salary) scheme or a defined contribution arrangement, such as a SIPP or a Personal pension plan. It also turns on whether the scheme member:

dies before taking retirement benefits; or
dies while receiving retirement benefits, whether as a Secured pension, a life annuity or income Drawdown,

and, in either situation, the age at death (that is, death before age 75 or death on or after age 75).

Defined benefit (DB) schemes

When a member of a defined benefit (DB) scheme dies, the benefits due will vary according to whether death occurs before or after retirement.

Death before drawing benefits

On death prior to retirement, any lump sum death-in-service payment will ordinarily be made by the Pension Scheme Administrators (PSAs), acting in their discretion, to one of the beneficiaries specified under the Rules of the Scheme...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...