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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Purchased life annuities: special types of annuity

A few categories of annuity attract special treatment.

Stock exchange benevolent fund ‘annuities’The term ‘annuity’ when used to describe payments out of the London Stock Exchange benevolent fund refers to what is in fact a gift that should not be regarded as income in the hands of the recipient.

Annuities paid under a personal injury damages settlementIn certain circumstances, periodical payments for personal injury damages paid by way of an annuity are exempt from tax - see

IPTM5000 onwards for more details.

Payments by the German Government to victims of Nazi persecutionThese annuities are not regarded as income for any income tax purposes.

Annuities and additional pensions paid to holders of certain awardsThe following are not treated as income for any income tax purposes

  • annuities and additional pensions paid to holders of the Victoria Cross
  • annuities and additional pensions paid to holders of the George Cross
  • annuities paid to holders of the Albert medal or Edward medal
  • additional pensions paid to holders of the following awards

    • Military Cross
    • Distinguished Flying Cross
    • Distinguished Conduct Medal
    • Conspicuous Gallantry Medal
    • Distinguished Service Medal
    • Military Medal
    • Distinguished Flying Medal.
Further reference and feedback IPTM1013