21Annuities etc.: chargeable consideration limited to 12 years' paymentsS
(1)This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable—
(a)for life,
(b)in perpetuity,
(c)for an indefinite period, or
(d)for a definite period exceeding 12 years.
(2)The consideration to be taken into account is limited to 12 years' annual payments.
(3)Where the amount payable varies, or may vary, from year to year, the 12 highest annual payments are to be taken into account.
(4)No account is to be taken of any provision for adjustment of the amount payable in line with the retail prices index, the consumer prices index or any other similar index.
(5)References in this section to annual payments are to payments in respect of each successive period of 12 months beginning with the effective date of the transaction.
(6)For the purposes of this section the amount or value of any payment is to be determined (if necessary) in accordance with section 18 (contingent consideration) or 19 (uncertain or unascertained consideration).
(7)References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically.
(8)References to payment are to be read accordingly.
(9)Where this section applies—
(a)sections 31 and 32 (adjustment where contingency ceases or consideration is ascertained) do not apply, and
(b)no application may be made under section 41 (application to defer payment in case of contingent or uncertain consideration).
Commencement Information
I1S. 21 in force at 1.4.2015 by S.S.I. 2015/108, art. 2