New regulations came into force on 6 April 2016 which impose new real time information (RTI) reporting requirements on schemes making certain types of lump sum payment, including uncrystallised funds pension lump sums.


There have been reports of HMRC wrongly issuing tax demands in respect of certain non-taxable lump sum death benefits that have been reported to it. In its Pension schemes newsletter 78, HMRC states that it is investigating the issue and suggests that in the meantime scheme administrators keep records of such non-taxable death benefits but stop reporting them. This only applies where the whole of the payment is non-taxable.

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Rachel Rawnsley

Rachel Rawnsley

Partner, Head of Pensions
United Kingdom

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Jade Murray

Jade Murray

Partner, Pensions
United Kingdom

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Catherine McAllister

Catherine McAllister

Partner, Pensions
United Kingdom

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Rachel Uttley

Rachel Uttley

Partner, Pensions
United Kingdom

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