The Taxation of Pensions Bill is being progressed to the next stage in Parliament. As reported in our October Update, the Chancellor has announced that individuals will be able to pass on their unused DC pension when they die under a more favorable tax treatment, and a new schedule has been included in the Taxation of Pensions Bill to effect this. Of particular interest are the new definitions of nominees and successors, which will effectively permit individuals other than a member's dependents to inherit the member's pensions savings on his or her death. These are as follows:

  • "nominee" is an individual (other than a dependent) nominate by the member or the scheme administrator; and
  • a "successor" is an individual nominated by a dependent of the member, nominee of the member, successor of the member, or the scheme administrator.
  • a "successor" is an individual nominated by a dependent of the member, nominee of the member, successor of the member, or the scheme administrator.