IHTM11075 - Annuity to spouse or civil partner: annuity secured by personal covenant

If the annuity (IHTM16211) is secured merely by personal covenant and is not a charge on any property, the gift to the annuitant should be treated as a legacy equivalent to the open market value of the annuity. The Actuarial Group is responsible for the valuation.

You should first ask the taxpayer or their agents to

• state the date of birth of the annuitant (IHTM16211)
• state the gender of the annuitant (if unknown), and
• provide a reasoned estimate of the open market value of the annuity

When that information is received, you should refer to the case to the Actuarial Group.