Part 4Savings and investment income
Chapter 7Purchased life annuity payments
422Charge to tax on purchased life annuity payments
1
Income tax is charged on annuity payments made under a purchased life annuity.
2
For exemptions, see in particular—
a
section 717 (exemption for part of purchased life annuity payments),
b
section 725 (annual payments under immediate needs annuities),
c
section 731 (periodical payments of personal injury damages), and
d
section 732 (compensation awards).
423Meaning of “purchased life annuity”
1
In this Chapter “purchased life annuity” means an annuity—
a
granted for consideration in money or money's worth in the ordinary course of a business of granting annuities on human life, and
b
payable for a term ending at a time ascertainable only by reference to the end of a human life.
2
For this purpose it does not matter that the annuity may in some circumstances end before or after the life.
424Income charged
1
Tax is charged under this Chapter on the full amount of the annuity payments arising in the tax year.
2
Subsection (1) is subject to Part 8 (foreign income: special rules).
425Person liable
The person liable for any tax charged under this Chapter is the person receiving or entitled to the annuity payments.