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UK Budget change spares bereaved families tax bills over pension delays

Bereaved families in the UK will no longer face unexpected tax bills caused by delays in civil service pension payouts, after a change in the Budget. Lump sums previously had to be paid within two years of a death to stay tax-free. The Civil Service Pension scheme, run by Capita since December 2025, had a backlog of 120,000 cases by February.

UK Budget change spares bereaved families tax bills over pension delays

This summary is based on reporting by BBC News.

Read the full story at BBC News