Income Tax (Trading and Other Income) Act 2005

178 (1) Amend section 437 (general annuity business) as follows. U.K.

(2) In subsection (1C)(b)(ii) after “capital elements” insert “ and amounts exempt under section 717 of ITTOIA 2005 ”.

(3) Omit “and” at the end of subsection (1C)(b).

(4) After subsection (1C)(c) insert “and

(d) the amounts exempt under section 717 of ITTOIA 2005 shall be determined in accordance with Chapter 7 of Part 6 of that Act, but for this purpose—

(i) it is immaterial whether or not an annuitant claims any relief to which the annuitant is entitled under that section; and

(ii) where, by virtue of section 718 of that Act, section 717 does not apply to an annuity, the annuity shall be treated as being exempt to the same extent that it would have been apart from that section.”