§ Mr. TylerTo ask the Chancellor of the Exchequer whether Inland Revenue regulations, as they relate to annuities, preclude an annuitant to transfer from one provider to another; and what plans he has to change the regulations. [79968]
§ Ruth KellyThe tax rules do not prohibit the transfer of liability to pay an annuity to a different provider so long as the terms of the annuity are not altered. It is a matter of contract between the parties whether this can occur at the request of the annuitant.
As indicated in the reply given on 18 July 2002 to the hon. Member for Bridgwater (Mr. Liddell-Granger),Official Report, column 467W, the Government plans to bring forward powers to make it possible to offer people buying annuities more choice and flexibility. Any 794W reforms to annuities will need to dovetail with simplification and other reforms being considered in the pensions Green Paper this autumn.