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Bereaved families will not face tax bill over pension delays under new rules

Campaigners had warned some families could face an unfair financial penalty because of delays which were not their fault.

BBC Business•

Bereaved families will no longer be hit by an unexpected tax bill because of severe delays paying out civil service pensions, following a change in Wednesday's Budget.

Under previous HMRC rules, certain lump sum pension payments had to be paid within two years of the pension scheme being notified of a death to remain tax-free.

Campaigners had warned some families could face an unfair financial penalty because of delays which were not their fault.

Rob told the BBC he was pleased the government had addressed the issue in the Budget as this would mean others in his situation would not face a tax bill.