Annuities A-day warning

Revenue will strictly enforce pre A-day rules regarding purchase of annuities by April 2006

Advisers have been warned that clients cannot delay purchasing an annuity until after A-Day if they turn 75 before that date. The Inland Revenue has confirmed it will strictly enforce pre A-day rules, which means that people who turn 75 on, or before, 6 April 2006, must buy a annuity before that point. Ken Wrench, chief executive of London & Colonial, said: "It has come to light that some advisers are actively encouraging clients already aged 75 to delay their annuity purchases and this is a real concern. "These advisers are mistaken in believing that if their clients delay until A-Day...