168. Immediate needs annuities.

No liability to income tax arises1 in respect of so much of an annual payment made under an immediate needs annuity as is made:

  1.  

    (1)     for the benefit of the person protected under that annuity; or

  2.  

    (2)     to a care provider2 or a local authority3 in respect of the provision of care4 for that person.

An 'immediate needs annuity' is a contract for a purchased life annuity