Part 6Exempt income

Chapter 8Other annual payments

Certain annual payments by individuals

727Certain annual payments by individuals

1

No liability to income tax arises under Part 5 in respect of an annual payment if it—

a

is made by an individual, and

b

arises in the United Kingdom.

2

Subsection (1) is subject to—

  • section 728 (commercial payments), and

  • section 729 (payments for non-taxable consideration).

3

Subsection (1) also applies to a payment made by an individual's personal representatives if—

a

the individual would have been liable to make it, and

b

that subsection would have applied if the individual had made it.

4

For the purposes of subsection (1) and section 728, “individual” includes a Scottish partnership if at least one partner is an individual.