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The tax treatment of a pension plan lump-sum benefit received due to death was consulted. The DGT ruled that these are taxed as employment income and do not qualify for the reinvestment reduction into a personal life annuity available to capital gains.
This ruling clarifies that lump-sum pension benefits received upon death are classified as employment income, preventing taxpayers from applying capital gains tax relief through reinvestment into life annuities.
The tax team reviews your specific situation.
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