§ Mr. HunterTo ask the Chancellor of the Exchequer if he will take steps to bring rules governing investment-linked annuities into line with those already in operation for pensioners in income drawdown. [91556]
§ Ruth KellyOn 17 December the Government published, for consultation, simplification proposals for the pension tax rules. The consultation paper, "Simplifying the taxation of pensions: increasing choice and flexibility", is available in the House of Commons Library. The consultation is to allow people the opportunity to put forward their views before final decisions are taken.
The consultation paper puts forward a proposed framework of general benefit rules within which new retirement products can be developed consistent with the requirement to annuities by age 75. These rules will apply to both annuities and drawdown products.
§ Mr. HunterTo ask the Chancellor of the Exchequer (1) if he will take steps to enable new providers to take over the payment of conventional annuities; [91557]
(2) if he will make it his policy to enable with-profits annuitants to transfer to other annuity providers. [91555]
§ Ruth KellyTax legislation does not prevent 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.