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News about Capita: events, facts and developments on tafs uz.

2 stories

World

UK scraps two-year tax deadline for death benefit pension payments after Capita delays

Following the Budget announcement, the UK government changed the rules: lump-sum pension death benefits will no longer become taxable simply because more than two years have passed since the pension scheme was notified of the death. The change followed delays in the administration of the Civil Service Pension scheme by Capita, which as of 30 September had 1,643 death cases open for more than 100 days.

Aziz Karimov
3 min read
World

Families of deceased civil servants may face 'unfair' tax due to delayed pension payments

Due to delays in administering the UK civil service pension scheme, transferred to Capita in December 2025, bereaved families risk losing the tax-free status of lump-sum death benefits. Under HMRC rules, the payment must be made within two years of the scheme being notified of the death. The chair of a parliamentary committee called the situation 'unacceptable', the Cabinet Office points to compensation mechanisms, but the ombudsman takes up to 18 months to consider complaints.

Aziz Karimov
3 min read