Policy paper

Draft legislation: pension flexibility - annuities

Draft legislation on changes to the taxation of annuities paid to beneficiaries as announced by the Chancellor in Autumn Statement 2014.


Draft legislation: pension flexibility - annuities and explanatory note

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HM Revenue and Customs has published draft Finance Bill legislation and draft explanatory notes for a technical consultation. The changes in the draft legislation are intended to provide that payments of annuities to beneficiaries can be made tax free on the death of an individual, subject to certain conditions.

The changes broadly mirror those made previously by the Taxation of Pensions Act 2014 in respect of drawdown funds.

Comments on the drafts should be sent by email to pensions.policy@hmrc.gsi.gov.uk by 4 March 2015.

Published 18 February 2015