Commentary

D7.419 Immediate needs annuities

Corporate tax
Corporate tax | Commentary

D7.419 Immediate needs annuities

Corporate tax | Commentary

D7.419 Immediate needs annuities

The rules in this division apply for accounting periods beginning on or after 1 January 2013. For accounting periods beginning before 1 January 2013 see Division D7.5.

Immediate needs annuities are normally taken out to provide for individuals entering long term care. There is a statutory regime for life annuities paid direct to care providers that are intended to provide the beneficiary with long-term care in the event of the individual's physical or mental impairment or permanent sickness1.

Immediate needs annuities are taxed in the insurer's hands on normal trading principles as part

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