Contents
Foreword 5
1. Introduction 6
2. A new secondary market for annuities 8
Consumer demand 8
Investor demand 9
How the market will operate 10
Purchases by the original annuity provider 11
Operational considerations 12
Scope of changes 13
3. Legislative changes 15
£10,000 annual allowance 16
Tax treatment on death 16
Information obligations 17
Treatment of the annuity after sale 17
Avoidance 17
4. Consumer protection 18
Helping annuity holders understand their choices 19
Preventing aggressive practices 20
Ensuring a competitive price 20
Protecting dependants 20
Protecting social care and welfare claimants and the taxpayer 21
Equality impact 22
5. How to respond to this consultation 24
Consultation process 24
Confidentiality 24
A. Summary of questions 25
A new secondary market for annuities (Chapter 2) 25
Legislative changes (Chapter 3) 25
Consumer protection (Chapter 4) 26
Figure 2.A. Secondary annuities market 11
Boxes
Box 2.A. Sample case studies 9