Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that beneficiaries of death in service pensions do not pay additional tax when there is a delay in the receipt of funds.
Where a member or beneficiary of a pension scheme dies and a lump sum death benefit is not paid to an individual within two years, the payment is taxable at the individuals marginal rate.
The Chancellor has no plans to revisit these rules.