Commentary

D7.466 General annuity business—Payments under old annuity contracts

Corporate tax
Corporate tax | Commentary

D7.466 General annuity business—Payments under old annuity contracts

Corporate tax | Commentary

D7.466 General annuity business—Payments under old annuity contracts

For accounting periods beginning before 1 January 1992, general annuity business was a separate category from basic life assurance business and was taxed under Schedule D Case VI on a gross fund basis. Contracts for such business are referred to as old annuities1. So that annuitants entering into such contracts were not disadvantaged, transitional rules were introduced to determine the amount of the annuities paid under old contracts, but not certain group annuity contracts, which are treated as management expenses.

The amount allowable as a management expense is the lesser of2:

the gross amount

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