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Is anyone here waiting to buy an annuity?

stoozie1 · 2017-08-18 17:07:58

When the rates are better I mean. If so, what rate would persuade you to buy? Where is the cash in the meantime? If no, why have you ruled them out permanently? There are a number of very savvy people here (not always with shared views!) And I just wanted to pick your collective brains really.

Comments

bostonerimus Posts: 5,617 Forumite

21 August 2017 at 3:02PM

stoozie1 wrote: »

Wow! That's amazing!

So with an annuity income of say 10k above your personal allowance, you only pay basic rate tax on 5k?

If you buy an annuity with already taxed money then only the part of the eventual payout that is due to interest will be taxed.......If you taxed the return of capital that would be double taxation. However, if you buy the annuity with tax deferred money than the entire payout will be taxed as income.

“So we beat on, boats against the current, borne back ceaselessly into the past.”
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