Chancellor Announces Abolition of 55% Pension Tax Charge On Death. From April 2015, doctors with a pension drawdown arrangement or with unused pension funds will be able to nominate a beneficiary to pass their pension to rather than pay 55% tax.
Doctors Who Die Before 75
If you die before you are 75 you can pass on any unused pension to any nominated beneficiary completely tax free. The person receiving the pension will pay no income tax regardless whether they take the pension all in one go or take it as an income.
Doctors Who Die After 75
If you die after the age of 75 you can still nominate any beneficiary to receive your unused pension. The nominated beneficiary will then be able to take an income from the pension flexibly and pay tax at their marginal rate of tax. There are no restrictions on how much income the beneficiary can take from the pension in one go.