Criminal Injuries Compensation Act 1995

8 Annuities

After section 329B of the [1988 c. 1.] Income and Corporation Taxes Act 1988, insert—

“329C Annuities: criminal injuries

(1) For the purposes of this section—

(a) “a qualifying award” is an award of compensation made under the Criminal Injuries Compensation Scheme with respect to a person (“A”) on terms which provide—

(i) for payments under one or more annuities purchased for A in accordance with the provisions of the Scheme to be received by A or by another person on his behalf; or

(ii) for payments under one or more annuities purchased in accordance with the provisions of the Scheme to be received and held on trust by trustees of a qualifying trust for the benefit of A; and

(b) “a qualifying trust” is a trust under which A is, during his lifetime, the sole beneficiary.

(2) Where a person receives a sum—

(a) as the annuitant under an annuity purchased for him pursuant to a qualifying award,

(b) on behalf of the annuitant under an annuity purchased for the annuitant pursuant to a qualifying award, or

(c) as a trustee to be held on trust for A under a qualifying trust, in a case where the sum is paid under the terms of an annuity purchased pursuant to a qualifying award,

the sum shall not be regarded for the purposes of income tax as income of the recipient, or as A’s income, and accordingly shall be paid without any deduction under section 349(1).

(3) In this section “the Criminal Injuries Compensation Scheme” means—

(a) the scheme established by arrangements made under the Criminal Injuries Compensation Act 1995; or

(b) arrangements made by the Secretary of State for compensation for criminal injuries and in operation at any time before the commencement of that scheme.”