Jeff Holt

Sorry, my mistake on the above post, the £8,000 should read £7,500. So again, my question is, because i haven't taken my 25% tax free allowance, do I pay income tax on the full £10,000 or £7,500? Thanks and sorry for the error.

Thank you. Just to clarify things, if the annuity is (say) £10,000 Pa gross, I declare these facts and then get the 25% tax free allowance to take the taxable amount to £8,000. I will then be liable to income tax on £8,000. Does this appear correct?

This is a new concept for me, so I don't know how long a reply will take. Just a quick "nudge" to see if anyone is there? Jeff

Hi I recently started receiving an annuity, a payment once per year. The annuity is based on me NOT taking my 25% lump sum. I assume that for income tax purposes I complete my Self Assessment form and state that the payment has not had any tax relief? I could have chosen to take a 25% tax-free sum, but chose to have a higher annuity. Thanks.