a plan that you buy with your
Purchased life annuities are purchased by private investors and payments comprise part taxed interest and part untaxed return of capital. Back to the Top
An annuity bought by an individual out of his own money as distinct from one provided under a pension scheme.
An Annuity bought with private savings (not pension savings). Part of the Annuity is deemed to be interest paid on the capital and is taxed. The other part is considered to be a return of capital and so escapes tax.