Section 718 | Excluded 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.