728. Calculation of tax-free annuities.

728.     Calculation of tax-free annuities.

If an annuity1 is bequeathed free of income tax the testator is taken to have intended to give, in addition to the stated amount of the annuity, such sum as will enable his trustees in each year to discharge the income tax on the annuity and the additional sum and to pay the balance to the annuitant2.

If an annuity is bequeathed free of income tax and higher rate tax, the gift is of such a sum as, after deduction of the income tax on it, will leave the amount of