Immediate care annuity

Purchased life annuities to fund the care of the elderly entering residential or nursing homes at a time of need. The annuity takes the form of tax-free payments to the care provider as it is a part of their taxable income. Immediate care annuities are ‘designated investments’ and therefore subject to the FSA’s Conduct of Business Rules. The annuities may be linked to the Retail Price Index.

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