Form R86 to Get a Joint Annuity Without Income Tax Taken Off
An annuity is a financial product that provides a fixed income for a specified period. It's often used as a way to provide retirement income, and many people choose to purchase a joint annuity that will continue to provide an income for their partner after their death. However, when purchasing an annuity, income tax is usually taken off the income. This can reduce the amount of income that's received, which is why many people choose to use Form R86 to get a joint annuity without income tax being taken off.
What is Form R86?
Form R86 is a form that can be used to request a joint annuity without income tax being taken off. It's used by people who are purchasing an annuity and want to ensure that their partner continues to receive an income after their death. By using this form, the annuity payments will be made to the surviving partner without any income tax being deducted. This can increase the amount of income that the surviving partner receives, making it a valuable tool for couples who are planning for their retirement.
Who can use Form R86?
Form R86 can be used by anyone who is purchasing a joint annuity and wants to ensure that their partner continues to receive an income after their death. It's important to note that not all annuity providers will offer this option, so it's important to check with your provider before completing the form.
How to Complete Form R86
Completing Form R86 is a relatively simple process. The form can be downloaded from the HM Revenue & Customs website or obtained from your annuity provider. The form itself consists of two sections:
Personal Details
In this section, you'll need to provide your personal details, including your name, address, and National Insurance number. You'll also need to provide the name and address of your annuity provider.
Declaration
In this section, you'll need to declare that you're purchasing a joint annuity and that you want the payments to be made to your partner after your death without any income tax being deducted. You'll also need to provide your partner's name and National Insurance number.
Once you've completed the form, you'll need to sign and date it before sending it to your annuity provider. Your provider will then process the form and make any necessary adjustments to your annuity payments.
Benefits of Using Form R86
Using Form R86 to get a joint annuity without income tax taken off can provide a number of benefits:
Increased Income
By not having income tax taken off the annuity payments, the surviving partner will receive a larger income. This can provide greater financial security and help to cover living expenses.
Simplified Tax Affairs
If income tax isn't deducted from the annuity payments, it can simplify the surviving partner's tax affairs. They won't need to worry about declaring the income on their tax return or paying any additional tax.
Greater Control
By using Form R86, you can have greater control over how your retirement income is distributed. You can ensure that your partner is provided for after your death and that they receive a fair share of the annuity payments.
Conclusion
Form R86 is a valuable tool for couples who are planning for their retirement. By using this form, you can ensure that your partner continues to receive income after your death without any income tax being deducted. This can provide greater financial security and help to cover living expenses. It's important to note that not all annuity providers will offer this option, so it's important to check with your provider before completing the form. Overall, using Form R86 can provide a number of benefits and help to ensure that your retirement income is distributed.