PART 3DEDUCTION AND REPAYMENT OF TAX

CHAPTER 1DEDUCTION AND REPAYMENT

Cessation of employment

Death of pensioner39

F1A1

This regulation applies to—

a

non-Real Time Information pension payers, and

b

Real Time Information pension payers to whom HMRC has given a notice requiring the pension payer to send to HMRC Form P45 or Form P46(Pen) on the commencement of a new pensioner’s pension.

1

On the death of a pensioner in respect of whom a code has been issued by the Inland Revenue, the pension payer must—

a

complete Form P45 indicating in Part 1 that the pensioner has died, and

b

send it to the Inland Revenue.

2

The pension payer must comply with paragraph (1)—

a

on the day on which the pension payer learns of the pensioner’s death, or

b

if that is not practicable, without unreasonable delay.

3

Paragraph (4) applies if the pension payer makes any relevant pension payments after the date of the pensioner’s death—

a

before completing Form P45, or

b

after completing Form P45 but during the tax year in which the pensioner died.

4

The pension payer must, on making any such payment, deduct or repay tax as if the deceased pensioner were still alive and in receipt of a pension at the date of the payment.

5

Regulation 37(2) to (6) applies to any relevant pension payment which—

a

is made in a tax year following the tax year in which the pensioner died, and

b

is not included in Form P45.