HC Deb 26 June 2003 vol 407 c935W
Miss Kirkbride

To ask the Chancellor of the Exchequer what plans he has to tax lump sum payments payable to the spouses of the pensioners who do not live for five years after their retirement. [121796]

Dawn Primarolo

The Government's consultation paper, 'Simplifying the taxation of pensions: increasing choice and flexibility for all' proposes a consistent set of rules governing the payment and taxation of benefits from tax privileged pension schemes. These rules will replace several sets of current rules, which are neither consistent nor coherent.

The simplification proposals were issued for consultation so people could put forward their views before final decisions are taken. The Government are now considering the responses received and will announce further details of the proposed new tax regime in the autumn.