A retirement annuity plan (RAP) is a UK pension plan designed to build a lump sum for retirement. Part of the lump sum must be used to buy an annuity and part can be taken a tax free lump sum.
The plans were introduced under section 226 of the Income and Corporation Taxes Act 1970 and are often referred to as section 226 contracts. However they are currently legislated under section 620 of the Income and Corporation Taxes Act 1988 and are therefore also known as section 620 contracts.
Read more about Retirement Annuity Plan: Tax Treatment
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