HMRC clashes with industry over annuity adviser charging

Problems with how advisers will collect their fee from an annuity transaction after the retail distribution review (RDR) have appeared because of the tax treatment of pensions. The difference of opinion has sparked a round of representations from IFAs and providers to HMRC, Tom McPhail, head of pensions research at Hargreaves Lansdown, said. The difficulty arises when a client wishes to buy an annuity from a different provider to the one they initially saved with. Advisers have assumed that, when a client selects adviser charging to pay for their annuity transaction, the current pe...