Useful Links for Annuities
Annuity Taxation
Tax Help for Older People (TOP).
A charitable organisation which aims to anticipate and avert tax problems for pensioners.
Pension Credit is a State entitlement for people aged 60 or over. You should apply if you have a weekly income of less than:
- £105.45 a week if you are single; or
- £160.95 a week if you have a partner.
Even if you income exceeds this, you may still be eligible since some income (such as Disability Living Allowance) may not be included in this means tested benefit.
Directgov: Claiming back tax in retirement.
Savings interest and retirement annuity income are normally taxed before you receive them. If you have a low income in retirement, you may be able to get these types of income tax-free. You may also be able to reclaim tax you've overpaid on them in the past.
HMRC: Application to receive an annuity without tax taken off.
This form is to be used for Purchased Life Annuities (PLAs). You can ask to have your annuity paid without tax taken off if:
- you are a resident of the United Kingdom
- you are unlikely to have to pay Income Tax on your total income subject to PAYE.
The above section from the HMRC website gives a list of forms concerning reclaiming tax in retirement.
Pensions Advisory Service RACs.
This is for holders of Retirement Annuity Contracts (pre 1988 forms of personal pensions) and explains the changes brought in, where annuities from RAC's are now taxed under PAYE at source, as opposed to paid gross or net of basic rate tax. See also HMRC Retirement annuities. which also includes a helpline number for those requiring clarification.
Directgov: How your pension income is taxed.
Explains how State pensions and annuities from different sources are taxed. How you pay tax on your pension income depends on the source of the income and your overall taxable income. If you are on a low income you may be able to claim tax back.
The site offers general guidance on tax topics for pensioners on low incomes. The group is made up of volunteer tax specialists from professional practice and the Revenue as well as welfare rights experts.
TaxAid is a UK charity providing free tax advice to people who cannot afford to pay a professional adviser. The service is independent and confidential.
HMRC Pension Schemes Services pages deals with the policy, operational and technical work relating to pension schemes. These pages include information on how to comply with tax obligations in relation to pension schemes and how to use their online service: Pension Schemes Online.
National Pensioners Convention.
The National Pensioners Convention campaigns for improvements to State pensions.
Regulation of Annuities
Provides information from the Government about retirement planning and options at retirement including annuities.
Of particular relevance to annuities is the Money Made Clear section: FSA Money Made Clear Pensions (helpline 0845 606 1234).
Department of Work and Pensions.
Provides a range of guides relating to the benefit system for all UK residents.
Information about pension credits from The Pension Service (part of The Department for Work and Pensions).
Government Actuary’s Department.
Statistics on Life Expectancy trends and other issues relevant to annuities.
Dispute resolution service for those who wish to complain about the advice given to them. The Ombudsman can grant compensation to those who suffer disadvantage because of bad advice.
Financial Services Compensation Scheme.
Even if an adviser or Life Office is no longer trading, the Financial Services Compensation Scheme can award redress for those who suffered disadvantage because of bad advice.
Covers occupational pension schemes and sets standards which trustees of pension schemes must adhere to.
Other Annuity Sites
For a comprehensive description of different types of annuities- refer to the annuity guide in Wikipedia.