Miscellaneous Financial Provisions Act 1983

6 Redemption of certain annuities. U.K.

(1) If the Treasury, in respect of an annuity to which this subsection applies—

(a) by notice in writing inform the person appearing to them to be entitled for the time being to receive the annuity that they propose to redeem it on a date specified in the notice (“the redemption date”), and

(b) tender to that person, not later than the redemption date, a payment calculated in accordance with subsection (7) below,

the annuity shall cease to be payable on the redemption date.

(2) Subsection (1) above applies to any annuity not exceeding £2,000 a year for the redemption of which the Treasury may contract under section 2 of the M1 Consolidated Fund (Permanent Charges Redemption) Act 1873 (and does not apply to an annuity first payable after the passing of that Act).

(3) Where a person entitled by virtue of any hereditary office to receive an annuity to which subsection (1) above applies has the right, as holder of the office, to nominate another person to an office which carries an allowance charged on the Consolidated Fund, the amount of the annuity shall, for the purpose of calculating the payment referred to in that subsection, be taken to be increased by the amount of the allowance; and the allowance shall cease to be payable when the annuity ceases to be payable.

(4) The redemption date specified in a notice given under subsection (1) above shall not be later than fourteen days after the date on which the notice is served; and the notice may be served by post or in any other way.

(5) If, in respect of an annuity payable by virtue of any of the enactments specified in the first column of the table below, the Treasury pay and the person specified (in relation to that enactment) in the second column of the table accepts a sum calculated in accordance with subsection (7) below, the annuity shall cease to be payable.

Table

Enactment by virtue of which annuity is payable	Person to whom payment is to be made
Section 1 of the Prisage and Butlerage Act 1803 (c.156).	The Receiver General of the Duchy of Lancaster.
Section 3 of the Tin Duties Act 1838 (c.120).	The Receiver General of the Duchy of Cornwall.
Section 9 of the Greenwich Hospital Act 1869 (c.44).	The Secretary of State.

(6) Any payment accepted by the Secretary of State under subsection (5) above shall be credited to the Greenwich Hospital capital account with the Paymaster General.

(7) The sum to be paid in respect of an annuity under subsection (1) or (5) above shall be such as would, according to the average price of undated government stock at the end of the relevant day, purchase an amount of such stock yielding annual dividends equal to the amount of the annuity; and in this subsection—

• “the relevant day”, in relation to subsection (1) above, means a day specified in the notice given under that subsection, being a day not more than seven days earlier than that on which the notice is served; and in relation to subsection (5) above, means a day agreed between the Treasury and the person to whom the payment is to be made; and

• “undated government stock” means government stock, within the meaning of section 15(1) of the M2 National Debt Act 1972, issued on terms which do not specify a date on or before which the stock is to be redeemed.

(8) Payments under this section shall be charged on and paid out of the Consolidated Fund.

Marginal Citations

M1 1873 c. 57.

M2 1972 c. 65.