TAXATION OF ANNUITIES

That this House, particularly in view of the current deterioration of pension funds, is deeply concerned by the prospect that those who do not take a full annuity before the age of 75 years would pay tax at 82 per cent. of residual funds based on tax charges of an unauthorised payments charge of 40 per cent., an unauthorised payments surcharge of 15 per cent., a scheme sanction charge of 15 per cent., and a possible 40 per cent. inheritance tax charge on the remaining 30 per cent. of the fund, leaving a balance of just 18 per cent. of that part of the original fund; and calls on the Government immediately to consider legislation to alleviate this exorbitant tax situation.