Income Tax (Trading and Other Income) Act 2005 section 118

Pre-1st January 2005 contracts for immediate needs annuities: income tax treated as paid

Section 118 preserves certain tax treatment for life annuity contracts made before 1 January 2005, ensuring they are not disadvantaged by the exclusion of immediate needs annuities from an insurer's basic life assurance and general annuity business.

• Applies to life annuity contracts entered into before 1 January 2005
• Prevents these contracts from losing their status as part of an insurer's basic life assurance and general annuity business solely because of the immediate needs annuities exclusion
• Protects the income tax treated as paid position under section 530 for policyholders with pre-2005 contracts
• The immediate needs annuities exclusion is defined by reference to section 57(2)(d) of the Finance Act 2012

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