Income Tax (Trading and Other Income) Act 2005 section 729

Annual payments for non-taxable consideration

Section 729 provides an exemption for certain annual payments made for non-taxable consideration, with special transitional rules applying to annuities granted before 30th March 1977.

• The section 729 exemption for payments made for non-taxable consideration is extended for annuities granted before 30th March 1977 by adding an extra qualifying condition (condition D)
• Condition D covers payments under an annuity charged on an interest in settled property, where the annuity was granted by an individual to a company whose business mainly involved acquiring interests in settled property
• Condition D also applies where the annuity was granted by an individual to a company that was carrying on life assurance business in the United Kingdom at the time
• In Scotland, references to settled property in these provisions are to be read as references to property held in trust