Part 6Exempt income

Chapter 7Purchased life annuity payments

Partial exemption for purchased life annuity payments

718Excluded annuities

1

The exemption in section 717(1) does not apply to payments made under the annuities specified in subsection (2).

2

The annuities are—

a

an annuity the whole or part of the consideration for which consisted of sums satisfying the conditions for relief under section 266 of ICTA (life assurance premiums),

b

an annuity purchased following a direction in a will, and

c

an annuity purchased to provide for an annuity payable as a result of a will or settlement out of income of property disposed of by the will or settlement.

3

For the purposes of subsection (2)(c), it does not matter whether or not capital could also be used to pay the annuity.