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IPTM7065 | Exceptions: certain life annuities: ITTOIA05/S718

From HM Revenue & Customs · Insurance Policyholder Taxation Manual

Annuities specified in ITTOIA05/S718 are not within the chargeable event regime, they are taxed under ITTOIA05/s422 and the exemption in ITTOIA05/s717 does not apply.

The main cases are annuities purchased

  • to fulfil the terms of a will or settlement

  • to recognise a person’s service in an office or employment

  • to satisfy the terms of a superannuation scheme or employer’s pension scheme

  • to satisfy the terms of a personal pension scheme or retirement annuity contract or by contributions to a retirement annuity trust scheme. See IPTM7060 for further information.