Commentary

E1.430C Purchased life annuities—purchase price of the annuity

Personal and employment tax

E1.430C Purchased life annuities—purchase price of the annuity

E1.430C Purchased life annuities—purchase price of the annuity

The purchase price is the total amount or value of the consideration given for the annuity1.

The consideration is to be apportioned on a just and reasonable basis:

  1.  

    •     if the consideration is not given solely for the annuity, or

  2.  

    •     if the amount or value of the consideration nominally given affected, or was affected by, the consideration given for something else2

For this purpose, consideration for a capital protected annuity is treated as given for the annuity itself3.

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