Bereaved families could face 'unjust' tax bill after civil service pension delays
Source: BBC ·
The chairman of Parliament's Public Accounts Committee says families should not be taxed through no fault of their own.
From the source
Bereaved families affected by severe delays paying out civil service pensions could face an "unjust" tax bill, the government has been warned. Under HMRC rules, certain lump sum pension payments must be paid within two years of the pension scheme being notified of a death to remain tax-free. Conservative MP Sir Geoffrey Clifton-Brown, who chairs Parliament's Public Accounts Committee, said it was "unconscionable" some families could face a "death tax" through no fault of their own. The Cabinet Office said that if delays caused a tax charge there were existing avenues to claim compensation, such as the Pensions Ombudsman. However, the ombudsman is currently advising that standard complaints are only likely to be resolved within 18 months, with more complex cases facing a longer wait. The Civil Service Pension scheme manages the pensions of 1.7 million public sector workers in the UK. Outsourcing firm Capita took over the administration of the scheme from a company called MyCSP in…