Part 6

Exempt income
Chapter 7

Purchased life annuity payments

Partial exemption for purchased life annuity payments

Excluded annuities
718
1
The exemption in section 717(1) does not apply to payments made under the annuities specified in subsection (2).
2
The annuities are—
a
an annuity the whole or part of the consideration for which consisted of sums satisfying the conditions for relief under section 266 of ICTA (life assurance premiums),
b
an annuity purchased following a direction in a will, and
c
an annuity purchased to provide for an annuity payable as a result of a will or settlement out of income of property disposed of by the will or settlement.
3
For the purposes of subsection (2)(c), it does not matter whether or not capital could also be used to pay the annuity.