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.

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