IPTM4600 | Purchased life annuities: special types of annuity

The following categories of purchased life annuity attract special treatment.

Stock exchange benevolent fund ‘annuities’

The term ‘annuity’ when used to describe payments out of the London Stock Exchange benevolent fund refers to what is in fact a gift that should not be regarded as income in the hands of the recipient

Annuities paid under a personal injury damages settlement

In certain circumstances, periodical payments for personal injury damages paid by way of an annuity are exempt from tax - see IPTM5000 onwards for more details.

Payments by the German Government to victims of Nazi persecution

These annuities are not regarded as income for any income tax purposes.

Annuities and additional pensions paid to holders of certain awards

The following are not treated as income for any income tax purposes

• annuities and additional pensions paid to holders of the Victoria Cross

• annuities and additional pensions paid to holders of the George Cross

• annuities paid to holders of the Albert medal or Edward medal

• additional pensions paid to holders of the following awards

• Military Cross

• Distinguished Flying Cross

• Distinguished Conduct Medal

• Conspicuous Gallantry Medal

• Distinguished Service Medal

• Military Medal

• Distinguished Flying Medal.