188. Annual payments for non-taxable consideration.

The following provisions apply to an annual payment which:

  1.  

    (1)     is made under a liability incurred for a consideration in money or money's worth;

  2.  

    (2)     either:

    1.  

      (a)     consists in whole or in part of a dividend or the right to receive a dividend; or

    2.  

      (b)     is not required to be brought into account in calculating for the purposes of income tax or corporation tax the income of the person making the payment;

  3.  

    (3)     either:

    1.  

      (a)     is charged to income tax under the provisions relating to annual payments1; or

    2.  

      (b)     is required to be brought into account for corporation tax