This week the Chancellor George Osborne pledged new retirement freedoms which scrap the punitive 55% tax rate on inherited pension funds. The proposed measure will apply to those inheriting cash held in a pension fund from April 2015. The policy is expected to benefit hundreds of thousands of families across the UK at a cost of £150 million each year.

Here are the current rules and what’s due to happen in April 2015:

Click here to view the table.

The biggest shift is for those who fall under 'Death under 75 and pensions is in drawdown' as they will pay no tax at all.

This proposed policy created new planning opportunities for pension savers across the UK wanting to retain and manage their wealth more efficiently and pass on their pension pots in a more tax efficient way.