21AnnuitiesE+W
(1)This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable—
(a)for life,
(b)in perpetuity,
(c)for an indefinite period, or
(d)for a definite period exceeding 12 years.
(2)The consideration to be taken into account is limited to 12 years' annual payments.
(3)Where the amount payable varies, or may vary, from year to year, the 12 highest annual payments are to be taken into account.
(4)No account is to be taken of any provision for adjustment of the amount payable in line with the retail prices index, the consumer prices index or any other similar index used to express a rate of inflation.
(5)References in this section to annual payments are to payments in respect of each successive period of 12 months beginning with the effective date of the transaction.
(6)For the purposes of this section, the amount or value of any payment is to be determined (if necessary) in accordance with section 19 (contingent consideration) or 20 (uncertain or unascertained consideration).
(7)References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically; and references to payment are to be read accordingly.
Commencement Information
I1S. 21 in force at 1.4.2018 by S.I. 2018/34, art. 3