Commentary

E1.430B Purchased life annuities—the exempt sum

Personal and employment tax

E1.430B Purchased life annuities—the exempt sum

E1.430B Purchased life annuities—the exempt sum

Where the term of the annuity depends solely on duration of human life

The exempt sum is:

where:

  1.  

         PP is the purchase price of the annuity (see E1.430C)

  2.  

         TY is the expected term of the annuity, in years and fractions of a year

  3.  

         PM is the period in respect of which the payment is made, in months and fractions of a month1

The expected term of the annuity is the period from the date when the first payment starts to accrue to the date when the last payment is expected to be made.

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