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Original poster

Tax on pensions, life insurances, payout after husband died "in service"

8 replies

Susanne49 · 04/04/2018 13:26

Can anyone tell me if I should be paying tax on lump sums I've had paid to me after my husband's death?
Thankyou

OP posts:
Oddbutnotodd · 04/04/2018 17:08

No. They are discretionary payments.

dontcallmethatyoucunt · 04/04/2018 18:33

Not unless his pension and (company) life assurance exceeded the £1M allowance. If it did speak to an IFA

ChessieFL · 04/04/2018 18:35

It may depend if they were paid to you by discretion or if they were paid to the estate. If paid to the estate they will be subject to inheritance tax if the total value of the estate is over the IHT threshold.

Sorry for your loss.

dontcallmethatyoucunt · 04/04/2018 18:58

Not if the money all goes to her though. IHT is assessible, but exempt between spouses.

bimbobaggins · 04/04/2018 20:12

Death in service payment is not included in the calculation of estate as it’s a discretionary payment

dontcallmethatyoucunt · 04/04/2018 20:24

No, but it is included in Life Time Allowance calculation unless it was prt of an excepted scheme.

Original poster
Susanne49 · 06/04/2018 08:07

Thankyou everyone.
Well the payments added together don't come to a million that's for sure!
One of the lump-sums was a "death in service" payment funnily enough...
My Husband died at 50 btw.
Thanks again everyone

OP posts:
dontcallmethatyoucunt · 06/04/2018 14:36

Flowers sorry for your loss.

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