152. Charge to tax.

Income tax is charged on annuity payments made under a purchased life annuity1; and corporation tax is charged on any annuity (whether inside or outside the United Kingdom) and whether payable annually or at shorter or longer intervals). The charge to corporation tax on income applies to annual payments2 that are not otherwise within the application of that charge under the Corporation Tax Acts3. Income tax is charged on the full amount of the annuity payments arising in the tax year; and the person liable is the person receiving or entitled to the payments4.

However, no liability to income tax