Chancellor George Osborne has confirmed retirees will be allowed to sell their annuity contracts for cash from April 2016 without facing "punitive tax charges".
A Treasury consultation on the plans, originally confirmed in a press release on Sunday, was released to coincide with the Budget announcement. The government said at present people wanting to sell their annuity income to a willing buyer face a 55% tax charge or up to 70% in some cases. Osborne said it would remove this "punitive" charge, so people are taxed only at their marginal rate. The government also said the Financial Conduct Authority would be asked to introduce guidance and consumer protection measures to prevent mis-selling. Labour leader Ed Milliband said advice on an...
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