2614.This section is based on section 18(1) and (3) (Schedule D Case III (a) and Cases IV and V) of ICTA. Subsection (1) charges residual annual payments to tax.
2615.The charge to tax in the source legislation is in respect of “any annuity or other annual payment”. The reference to “any annuity or other” is omitted because most annuities are not charged to tax under Chapter 7 of Part 5 of this Act but under Part 4 of this Act or ITEPA. Including a reference to annuities might therefore be misleading.
2616.Likewise the examples of annual payments in Schedule D Case III (a) are omitted on the basis that including these risks misleading the reader either by excluding a right which may give rise to an annual payment or by including rights which may not.
2617.The words “whether such payment is payable within or out of the United Kingdom” in Schedule D Case III (a) are also omitted. See the commentary on section 369 of this Act.
2618.The charge to tax in the source legislation excludes “any payment chargeable under Schedule A”. It is not necessary to rewrite this as the priority rules (see section 575 (2)) ensure that property income is taxed under Part 3 of this Act and not under any other Part.
2619.Subsection (2) ensures that any exemption from other charges to income tax is not reversed by the charge under this Chapter. It protects an exemption, whether provided by Part 6 of this Act or other legislation.
2620.Subsection (3) rewrites “or whether the same is received and payable half-yearly or at any shorter or more distant periods”.