Are annuity death tax changes a job 'half done'?

Are the annuity death tax changes unveiled at Autumn Statement 2014 a job 'half done'?

Helen Morrissey
clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Watch PA's Working Lunch with L&G: Navigating the new landscape of retirement solutions

Watch PA's Working Lunch with L&G: Navigating the new landscape of retirement solutions

Catch up on the discussion

Professional Adviser
clock 09 April 2026 • 1 min read
The changing nature of retirement planning

The changing nature of retirement planning

Retirement planning conversations must 'evolve'

Lorna Shah
clock 02 April 2026 • 4 min read
The advice dividend in an age of retirement uncertainty

The advice dividend in an age of retirement uncertainty

The UK pensions landscape has become progressively more complicated in recent decades

Andrew Tully
clock 17 February 2026 • 4 min read