The tax treatment of annuities has been brought into line with income drawdown. While this is largely a positive thing, inconsistencies remain finds Helen Morrissey...
George Osborne's announcement of changes to the tax treatment of annuities was widely foreshadowed in the run up to the Autumn Statement. Under the changes, the 55% tax charge levied on beneficiaries of people who die under the age of 75 with a joint life or guaranteed term annuity will be abolished. Beneficiaries will receive future payments from such policies tax free where no payments have been made to the beneficiary before 6 April 2015. The tax rules will also be changed to allow joint life annuities to be paid to any beneficiary. If the annuitant dies after the age of 75 t...
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