The 2009 and 2012 pension regulations, related to the Finance Act 2004, allow annuity holders to convert an annuity into a lump sum of £10,000 or less.

Customers must take the whole pot as cash and it will be taxed as part of their income for that tax year.

The information had been on government websites since 2009.

http://www.thisismoney.co.uk/money/pensions/article-3871820/Secret-law-says-cash-annuity-surprise-surprise-insurers-refusing-pay-up.html#ixzz4OBboGC4w