I am entitled to 150,000 tax free lump sum on retirement. However, as I am taking early retirement, I will receive about 115,000. I have an AVC valued at 80,000. I will use 35,000 of this to bring my lump sum up to the 150,000 threshold. If I use the remaining AVC (45,000) to buy an annuity, am I liable to be taxed on this amount (45,000) before I put it into an annuity? Thanks.