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Tax free cash
The UK Inland Revenue rules allow you to take a certain amount of tax-free cash from your pension fund. This can be up to 25% of the total value of the fund.
Why would you want to have tax-free cash? Well apart from the obvious reason of having some money to clear debts, or purchase special items, or for that holiday of a lifetime, you might want to invest it in an annuity.
The reasoning behind this is that there are different tax rules for income gained from a purchased life annuity (one you would buy with the tax-free cash) and a normal annuity (bought with the balance of your pension). This can result in increased income from the same amount of pension funds.
To find out if tax free cash would best suit your needs, or if you already know what you need, complete the free, no obligation annuity quote form below . Our financial advisers will look at the current annuities marketplace and provide comparisons specific to your needs and requirements.
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