902Meaning of “applicable rate” in section 901U.K.
This section has no associated Explanatory Notes
(1)This section gives the meaning of “applicable rate” in section 901(4).
(2)Except in the case dealt with in subsection (3), the applicable rate is the basic rate in force for the tax year in which the payment is made.
(3)If the payment—
(a)is an annuity payment under a purchased life annuity, and
(b)meets the condition in subsection (4),
the applicable rate is the savings rate in force for the tax year in which the payment is made.
(4)The condition is that the payment either—
(a)is savings income, or
(b)would be savings income, if it were the income of an individual within the charge to income tax.
(5)In this section “purchased life annuity” has the meaning given by section 423 of ITTOIA 2005.