159. Annuities paid out of capital.

The fact that an annuity is paid out of capital does not affect the character of the payment in the recipient's hands1. The question is what is the nature of the payment in his hands rather than what is the fund out of which the payment was made. Thus where, under the terms of a will, if the income of the residue of the estate should be insufficient, the trustees were empowered to realise capital to make up the income of a beneficiary to a certain amount, and in fact did so, the amount so paid was held to