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Lifetime annuity payment- is it all taxed?
tingly
Posts: 236 Forumite
Could anyone tell me please if part of a lifetime annuity payment is classed as return of capital for tax purposes?- am trying o work out the best option for me when drawing my personal pension
Thanks
Thanks
0
Comments
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Could anyone tell me please if part of a lifetime annuity payment is classed as return of capital for tax purposes?
No; not if it's a pension annuity you buy. But if you use your tax-free lump sum to buy a Purchased Life Annuity, then yes; the tax treatment is favourable to reflect the return of capital.Free the dunston one next time too.0 -
Thankyou very much0
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