Lump sum death benefits - information requirements

03 February 2017


This draft regulation makes changes to the Registered Pension Schemes (Provision of Information) Regulations 2006 - The Registered Pension Schemes (Provision of Information) (Amendment No. 2) Regulations 2016. The Regulation comes into force on 6 February 2017.


When a taxable lump sum death benefit is paid to a trust, these regulations require scheme administrators to provide information to the trustee on the amount of lump sum death benefit and tax paid by the scheme administrator. The regulations also require trustees to pass on the information if the trustees then use the lump sum death benefit to make a payment to an individual beneficiary of the trust. This makes sure the trust beneficiary has the information they need in order to claim a refund of the excess tax paid by the scheme administrator over and above the tax at their marginal rate.


HMRC will be updating the Pensions Tax Manual shortly to include these requirements.

HMRC are also developing 2 new forms to help scheme administrators and trusts provide the information required in these regulations and will provide an update on these in due course.