Government Bereavement Payments

…for deaths on or after 6 April 2017, bereavement payments are replaced by a new bereavement support payment. This is worth £3,500, plus £350 a month for 18 months, for claimants with dependent children (£2,500 plus £100 a month for other claimants). To qualify, the surviving partner must be under the state pension age, and the deceased must have paid ‘sufficient’ National Insurance contributions.

The bereavement support payment is not taxable and is disregarded in the calculation of other means tested benefits.

With effect from 6 April 2016 dividends and bank and building society interest are paid gross

…and, from 6 April 2017 interest payments from OEICs, authorised UTs, investment trusts and peer-to-peer loans are also paid gross. All individual taxpayers (so not trustees) are entitled to a £2,000 dividend allowance (was £5,000 in 2017/18) and to a personal savings allowance of £1,000 (basic rate taxpayer) or £500 (higher ratetaxpayer). On income in excess of these allowances basic rate for dividends is 7.5%, higher rate is 32.5% and additional rate and trust rate is 38.1%. Equivalent income tax rates on savings income are 20%, 40% and 45%.