Annuities - From personal pensions to annuities, our best buys will help you compare pensions and the latest annuity rates to help you save for retirement.
Compulsory Purchase
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Compulsory Purchase
Compulsory purchase annuities are bought with a payment from an employer's pension scheme or personal pension fund. Part of the fund may be paid out as tax-free cash, the remainder must be used to buy an annuity.
The income payments (usually monthly) from this type of annuity are taxed as earned income and are usually paid to the recipient net of basic rate tax. Higher rate taxpayers may be liable for additional tax which at present has to be collected separately.
