Revenue Note for Guidance
(1) This section excludes certain annuities and other annual payments from the rules of this Chapter requiring deduction of tax at source. The section applies – with certain exceptions – to any annuity or other annual payment made under a liability incurred for consideration which is not or is not fully taken into account in computing the taxable income of the person making the payment.
The exceptions are interest, annuities granted in the ordinary course of a business of granting annuities and payments to an individual for surrendering or transferring an interest in settled property to the holder of a subsequent interest.
(2) Where the section applies —
Relevant Date: Finance Act 2020