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HMRC internal manual

Insurance Policyholder Taxation Manual

HM Revenue & Customs
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Annuities purchased under the Criminal Injuries Compensation Scheme: tax exemption

Under the Criminal Injuries Compensation Scheme, an annuity may be purchased orprovided under an award of compensation for the benefit of the victim of a criminalinjury.

The annuity payments under such an award are also specifically exempted from tax in thesame way, and to the same extent, as an annuity payable as a result of an order providingfor periodical payments of damages for personal injury.

The persons listed in IPTM5060 are exempt from tax on thepayments and if the payments are made to a trust, any payments to the injured person, or aperson on his or her behalf, out of those payments are also exempt in the same way asdescribed in IPTM5070.

Further reference and feedback IPTM1013