Free legislation on LexisWeb is as enacted and does not take into account any amendments

Full Table of Contents

721Exempt sum: term dependent solely on duration of life

(1)    In the case of an annuity within section 719(7) (term dependent solely on duration of life), the exempt sum is—

PP x (1 / TY) x (PM / 12)

where—

PP is the purchase price of the annuity,

TY is the expected term of the annuity in years (and any odd fraction of a year), and

PM is the period in months (and any odd fraction of a month) in respect of which the annuity payment is made.

(2)    The purchase price of the annuity is the total amount or value of the consideration given for the annuity.

(3)    The expected term of the annuity is the period from the date when the first annuity payment starts to accrue to the date when it is expected that the last payment will become payable.

(4)    The expected term of the annuity is determined—

(a)    as at the date when the first annuity payment starts to accrue,

(b)    by reference to tables of mortality prescribed under section 724, and

(c)    taking the age at that date of a person during whose life the annuity is payable as that person's age in whole years on that date.

(5)    But if it is not possible to determine that term by reference to the tables mentioned in subsection (4)(b), it is such period as may be certified by the Government Actuary or the Deputy Government Actuary.

NOTES
Initial Commencement
Specified date

This Act comes into force on 6 April 2005 and has effect, for the purposes of income tax for the year 2005–06 and subsequent tax years, and for the purposes of corporation tax for accounting periods ending after 5 April 2005: see s 883; for transitional provisions and savings see Sch 2 hereto.
Exempt Income92 Company Law & Business Entities92 Personal Taxes92 Savings & Investment Income92 Companies & Corporate Bodies92 Income Tax92 Trading Income93 Tax Law92

Full Table of Contents

Lexis®Library

  • Authoritative guides to the status of statutory provisions and their meaning from a range of titles from Butterworths, Halsbury's Statutes and TolleyView other related LexisLibrary annotations
  • The current law in England and Wales, consolidated by the incorporation of amendments into existing legislation, by an expert team of editorsView Consolidated Version
  • Indicates the date on which a section of an enactment was brought into force, powered by Halsbury's Is It In ForceView current status of this Act
  • Cases related to this particular case that are related to, or discuss this caseView related cases
  • Official explanatory notes that further explain the effects of the Act and summarise what the Act sets out to achieveView official explanatory notes
  • Commentary discussing this particular case from LexisLibrary's comprehensive range of titles including Butterworths, Halsbury's and TolleyView all related commentary
  • An authoritative guide to the status of statutory provisions and their meaning, including definitions, cross-references and information on commencement and amendmentView Halsbury Statutes Citator
  • Subordinate legislation is made under the authority of a provision (or provisions) of an Act (or Acts) of ParliamentView all subordinate legislation