Life Policies: annuities payable to deceased/transferor by insurance companies: introduction
An annuity (IHTM16211) is a yearly entitlement to a particular sum of money. The annuity may be payable at some other frequency, usually monthly, quarterly or half yearly. This entitlement may arise from a number of different sources, and it is important to determine the type of the annuity before deciding on the correct treatment for Inheritance Tax.
- linked to life policies
- which are not retirement annuities or pensions.
These are normally referred to as purchased life annuities (IHTM20632).