Following our story on ‘Money Back Annuities’ dated 22 June, the Inland Revenue has spoken out, fearing tax problems.
Legal & General’s annuity seminar last week was hosted by Paula Diggle from the Inland Revenue. Ms Diggle, who is the head of savings and pensions at the Inland Revenue, said that they saw "a number of drawbacks" with money back annuities. The most relevant was her comment that "the tax breaks given by the Inland Revenue are given to encourage saving for retirement, not to pass on to heirs".