Death in service benefits payable in respect of service under
the Crown, local authorities or overseas governments are generally
(but not always) payable at discretion (
IHTM17053) and so not liable to IHT.
All cases where the death benefit (
IHTM17030) has not been included for
tax should be referred to the Pension Specialist in TG at IHT
Edinburgh who will confirm the position (although the death benefit
itself might not be liable to IHT an alternative claim may have
arisen in the specific circumstances of the case).
The following table is therefore for general guidance only
and is not intended to be exhaustive
| Nature of Service and payment | Whether payment included in estate | |
| Civil Servants
| ||
| Repayment on death of
contributions by civil servants who were neither married nor in a
civil partnership (
IHTM11032) in respect of widow's or
surviving civil partner's pension
| Yes | |
| Death Benefits payable on
death of serving civil servant
| No | |
| H M Judges
| ||
| Where benefits are
payable under the Judicial Pensions and Retirement Act 1993
| Yes, unless a valid irrevocable nomination was in force at the death | |
| Overseas Service
| ||
Sums payable on death to
personal representatives by way of return of subscriptions under
the regulations of
| No (IHTA84/S153 (1)) | |
| Lump sum payable on death
to personal representatives under a scheme constituted under the
Pensions (India, Pakistan and Burma ) Act 1955 or a corresponding
scheme ( a foreign asset by virtue of S153 (2)(a)
| Yes if the deceased died domiciled ( IHTM13000) in the UK (excluded property under IHTA84/S6 (1) if not so domiciled) | |
| Benefits payable to
personal representatives as of right on death of a Colonial
Government servant (a foreign asset by virtue of S153 (2)(b))
| Yes if the deceased died domiciled in the UK (excluded property under IHTA84/S6(1) if not so domiciled) | |
| Benefits payable under
s.1 Overseas Pensions Act 1973 other than ‘statutory
increases’ thereof (a foreign asset by virtue of S153 (4) and
S153 (2)(b))
| Yes if the deceased died domiciled in the UK (excluded property under s.6(1) if not so domiciled) | |
| Benefits payable out of
the Central African Pension Fund (a foreign asset by virtue of S153
(2)(c))
| Yes if the deceased died domiciled in the UK (excluded property under s.6(1) if not so domiciled) | |
| Lump sum payable on death
to personal representatives as of right under scheme constituted
under the Overseas service Act 1958, or a corresponding scheme (a
foreign asset by virtue of S153 (2)(d))
| Yes if the deceased died domiciled in the UK (excluded property under s.6(1) if not so domiciled). | |
| Teachers
| ||
| For deaths after 1.11.88
the English regulations were brought in line with the Scottish and
in both the death benefits are discretionary. The Regulations say
‘a death grant may be paid….’
| No | |
| Any part of the lump sum
attributable to additional voluntary contributions paid under the
Teachers (AVC) Regulations 1989 if the deceased did not leave a
widow, widower or surviving civil partner
| Yes | |
| Local Government
| ||
| The death grant is
discretionary and under the regulations the administering authority
may make payments…..
| No | |
| National Health Service
| ||
| Pre 1.4.2000. Under the
1995 Regulations where the member leaves no surviving widow(er) or
surviving civil partner (or the member has given notice that any
widow(er) or surviving civil partner) is not to receive payment
then the death benefit is paid to the members personal
representatives as of right
| Yes | |
| Post 1.4.2000. Under the 2000 regulations the member can revoke any existing nomination and where there is no nomination in place the lump sum ‘shall be paid to the member’s personal representatives’. | Yes. IHTA84/S3 (3) applies to give a claim on the value of the death benefit |
