1213 - Taxable lump sum death benefit payment (overseas pension schemes only)
You may need to make an entry in this field if, after the death of a member of an overseas pension scheme, you received any of the following lump sum payments from the deceased member's 'UK tax-relieved funds' or 'UK transferred funds':
- a pension protection lump sum death benefit
- an annuity protection lump sum death benefit
- a drawdown pension fund lump sum death benefit
- a defined benefit lump sum death benefit where the member had reached age 75 at the date of their death
- an uncrystallised funds lump sum death benefit where the member had reached age 75 at the date of their death
Tax is charged at the rate of 35% on the amount of benefit payments in respect of a member who died before 6 April 2011. If the member died on or after 6 April 2011, the tax is charged at the rate of 55%.
You also need to make an entry in this field if you've received a payment from an overseas pension scheme that qualifies as a serious ill-health lump sum. You're liable to a tax charge at the rate of 55% of the amount you received if you'd reached the age of 75 when the lump sum was paid.
If the deceased member had a mixture of 'UK tax-relieved funds', 'UK transferred funds' and other funds in an overseas pension scheme, payments from it are deemed to come first from the 'UK tax-relieved funds' and the 'UK transferred funds' until they're reduced to nil. Such payments can only give rise to a charge if they're deemed to have come from those funds.
You can ignore this field if the deceased member wasn't UK resident in tax year 6 April 2017 to 5 April 2018 or in any of the previous 5 tax years.
Enter in this field the amount of the benefit received.
You can convert that amount into sterling using the 'spot rate' for the date of payment
