“It seems a little unfair now that the widow whose husband died last year should pay tax on her £20,000 annuity pension, or the Defined Benefit spouse pay tax on her income, whilst the widow whose husband dies next year could pay no tax on her £20,000 annuity pension.”
“Like a good bookie the Chancellor today played the odds game. Statistically if you are of an age where you can draw your pension and buy an annuity you are very likely to survive to age 75. Therefore, whilst not taxing spouses pensions and guaranteed periods under 75 is very welcome, the number of people that will benefit is relatively small.
“Conversely being able to leave ISAs in situ will benefit a great number of people and whilst it doesn’t have the razzle dazzle of some of the pension announcements of the past year it will be hugely beneficial.”