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17.12.2015

Pensioners will be able to sell annuities from April 2017

Pensioners will be able to convert their income for life to a capital sum. This is a very welcome measure.

The government estimates that around five million people have bought annuities, and that they receive a total income of £13bn a year.

Currently, it is possible to sell an annuity, but a tax charge of between 55% and 70% makes it an impractical option for most people.But among the proposed changes, individuals who receive a lump sum from selling their annuity will only pay tax at their highest marginal income tax rate.”