Bernard Rust

Thanks for that answer. I understand how pensions are taxed. The issue I have is that the client applied for tax free cash, legitimately, while he as alive. Due to processing delays, he died before the money was paid. The question I have - is it fair that his dpendents will now pay tax on that withdrawal. Should the TFC be paid as it was in progress before he died? Many thanks.

My client aged 80 applied for tax free cash from pension. The provider delayed the payment as they did not have the correct bank account to make the payment. 4 days later the client died and now the provider will not make the tax free payment, stating that the fund is now taxable. I know the payments are taxable on recipients on death claims after age 75. But should not the fact that he applied while he was alive prevail?