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261/6 CEEFAX1 Thu 2 Feb CEEFAX.TV
ANNUITIES - EXPLANATORY NOTES 6/10
TAXATION: Annuities bought with a
pension fund are taxed as earned income
and the insurance company makes a PAYE
return.
Annuities bought with non pension money
- PLAs - are taxed differently. For
PLAs each annuity payment is divided
into return of your capital (no tax)
and interest. The interest portion is
taxed.
If you are a non-tax payer annuities
can be paid gross by special
arrangement with the Revenue.
Source: Annuity Direct
Headlines 200 Your Money 250

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