Annuity to spouse or civil partner: property charged with or appropriated for payment
The annuity (IHTM16211) may be charged on particular property or a fund may be set aside or appropriated to provide for the annuity. In these cases the value of the gift of the annuity is the value of the property required to produce it. If the charged property or appropriated fund produces income in excess of the annuity, the value of the annuity is the slice required to produce it. But if the annuity is charged in or payable out of property producing little or no income, you should refer the case to Technical (IHTM01081) after asking how the estate intends to pay the annuity.
This instruction does not apply where the annuity is of a variable amount (IHTM11077).