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Taxation of annuity PURCHASE
beetlewoman67
Posts: 4 Newbie
If one has a SIPP with a value in excess of the (old) LTA, would the purchase of an annuity - let’s say the purchase of a £1m annuity - be entirely tax free? For example the TFLS of £268k taken, then buy £1m annuity, and there might be a bit left to remain invested after that?
in the ‘old’ days would such a purchase have been taxed? Perhaps 55%?
it goes without saying I understand and accept the annuity payments are taxable at marginal rate.
thank you, and sorry for the left field and potentially unusual question,
in the ‘old’ days would such a purchase have been taxed? Perhaps 55%?
it goes without saying I understand and accept the annuity payments are taxable at marginal rate.
thank you, and sorry for the left field and potentially unusual question,
0
Comments
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There will still be an LTA calculation but this tax year there is no LTA charge applied.I am was an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0
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Be aware that legislation might change in future/new government. Probably not straight away, if at all, but keep in mind if you are planning for a few years ahead.0
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