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HMRC internal manual

Tax Credits Technical Manual

Further disregards in the calculation of investment income: Life annuities

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 10(2), Table 4, Items 10 and 12.

When calculating investment income, disregard the following:

  • Any payment of interest under a life annuity to the extent that it is eligible for relief under section 353 of the Taxes Act by virtue of section 365 of that Act (item10).
  • A purchased life annuity to which section Chapter 7 of Part 4 of ITTOIA applies (item12). (That is, the amount exempted under section 717 of ITTOIA as calculated under section 719 of ITTOIA).