Deferring pension annuity decision
New guidance has been published following the Chancellor’s recent Budget announcement that anyone who has yet to reach age 75 will be able to defer a decision to purchase an annuity if they reach 75 before 6 April 2011. These transitional tax rules which reference a retirement age of 77 apply from 22 June 2010.
The guidance outlines how the new interim pensions tax rules will apply and the related changes to treatment for inheritance tax purposes. The technical guidance was republished on 5 July to correct an error relating to Inheritance Tax
This is a stop gap measure as the intention of the coalition Government is to abolish the effective requirement to use a pension fund to buy an annuity by age 75 (or 77) from 6 April 2011