Pensioners will be able to leave more of their money to the next generation from next April, George Osborne is to announce at the Tory conference.
The chancellor will abolish a 55% tax that currently applies to untouched "defined contribution" pension pots left by those aged 75 or over, and to pensions from which money has already been withdrawn. Inheritors will now only pay the marginal income tax rate, or no tax at all if the deceased was under 75 and the pension is left untouched. The Treasury predicts the new policy will cost approximately £150m per year. The idea was first floated in July, when a consultation was launched. As well as the pension change, Mr Osborne is also expected to announce a "big cut" to welfare spending, BBC political editor Nick Robinson said. Labour and the Liberal Democrats will be challenged to match the measure, he added.....Read more here