Death of person with interest in possession: death of annuitant
Where an annuity payable out of or charged on settled property is terminated by thedeath of the annuitant, Sections 72(1) and 73(1) apply in the same way as for an interestin possession. TCAG92/S75 which applied to most annuities up to 5 April 1996, was replacedby TCGA92/S72 (3) which is applied for the purposes of section 73 by TCGA92/S73 (3).
In such a case, subject to CG36492 the corresponding part of the underlying assets, seeCG36476, should be treated as the proportion of the whole which the amount of the annuitybears to the income of the trust. Income for this purpose should be taken to be the trustincome of the twelve months immediately preceding the termination or the last trustaccounts year ending before the termination.