Part 6Exempt income
Chapter 7Purchased life annuity payments
Partial exemption for purchased life annuity payments
722Consideration for the grant of annuities
1
This section applies if the amount or value given for an annuity is to be determined for the purposes of sections 720(2) or 721(2) and either—
a
consideration is not given solely for the annuity, or
b
it appears that the amount or value of the consideration nominally given for it affected, or was affected by, the consideration given for something else.
2
For the purposes of subsection (1), consideration given for a right to a return of premiums or of other consideration for an annuity is treated as given solely for the annuity.
3
If subsection (1)(a) applies, the consideration is to be apportioned in such way as is just and reasonable.
4
If subsection (1)(b) applies, the total amount or value of the considerations given is to be apportioned in such way as is just and reasonable.