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HMRC internal manual

Insurance Policyholder Taxation Manual

Purchased life annuities: partial exemption scheme: consideration

If, for the purposes of the formulae at IPTM4320 (exemptproportion) and IPTM4330 (exempt sum), it is necessary todetermine the purchase price of an annuity this is taken to be equal to the total amountor value given for it.

If either

  • consideration is not given solely for the annuity, or
  • it appears that the consideration given nominally for it affected, or was affected by, the consideration given for something else

the consideration, or as the case may be the total amount or value of theconsiderations, is apportioned in such a way as is just and reasonable.

Further reference and feedback IPTM1013