It has always been possible to sell second hand annuities but impractical as once sold, the proceeds would be taxed at between 55% and 70%.
These high tax penalties are being removed with effect from April 2017 and that means that you can convert your annuity for a cash sum to spend as you like.
Instead of the high tax penalties, you will pay income tax at your marginal rate.
If you have a single life annuity then the purchaser will be entitled to an income from your annuity for as long as you live, so you are likely to get more from your annuity if you are in good health.
Of course you may have taken out a joint life annuity, so the chances are that these may be favoured more highly by prospective purchasers.
It is fairly hard to predict how the market in second hand annuities will work in practice, as any prospective purchasers may not be willing to meet the expectation of price from the annuity holders.
Those most likely to benefit (in my opinion) are those people who are in receipt of an annuity that was linked to a guaranteed annuity rate from the proceeds of their pension.
The chances are that they will be in reasonable health and possibly in receipt of a guaranteed 12% or even 14% annuity rate. The companies that were forced to provide these high guaranteed annuities would I believe be reasonably keen to buy them back. That is possible under the new legislation.
As always take advice.