Individuals hoping to pass on their pension assets to heirs had their hopes firmly dashed yesterday when, counter to some expectations in the industry, the chancellor failed to relax recently-introduced death taxes on pensions for the over-75s.

In February, Ed Balls, economic secretary to the Treasury, indicated there was some room for manoeuvre following the surprise announcement in December's pre-Budget report that an "unauthorised payments" charge of up to 70 per cent would be applied at deathon alternatively secured pensions (ASPs), retirement vehicles for the over-75s.