Regulation 7 What must be done on receipt of the completed form

(1)

This regulation applies where the annuitant has complied with regulations 5 and 6(1).

(2)

The relevant person must calculate the exempt capital element of the annuity in accordance with the mortality F1table which, at the time when the annuity payments become due and payable, F2is prescribed in paragraph (3).

F3(3)

The mortality table prescribed for the purposes of sections 720(4) and 721(4) of the 2005 Act is the table which specifies mortality rates according to “lives” and which is comprised in Table A11 set out in Appendix A on pages 181 to 183 of the booklet entitled “Continuous Mortality Investigation Reports Number 17”, published by the Institute of Actuaries and the Faculty of Actuaries in 1999.

(4)

For the purposes of this regulation the relevant person must assume that the information provided by the annuitant on the form referred to in regulation 6 is correct unless there are reasonable grounds to believe otherwise.

(5)

When calculating the exempt capital element, the relevant person must—

(a)

if the annuity is one to which section 720 of the 2005 Act applies, calculate the exempt proportion; or

(b)

if the annuity is one to which section 721 of the 2005 Act applies, calculate the amount of the exempt sum.

(6)

If the annuitant has made a declaration under regulation 5(1)(b) that would lead the relevant person to reasonably conclude that the annuity is ineligible for the partial tax exemption, the insurer must make a statement, on the appropriate part of the form, that the annuity has no exempt capital element.

(7)

The relevant person must state, on the appropriate parts of the form—

(a)

if paragraph (5)(a) applies, the exempt proportion, or

(b)

if paragraph (5)(b) applies, the exempt sum and

notify the annuitant of the amount so calculated.

(8)

The relevant person must complete the appropriate parts of the form in accordance with this regulation, and must—

(a)

sign and date the form; and

(b)

state the business address and position in the organisation of the individual who completes the form.

(9)

The relevant person must send the form fully completed with the information required by regulation 4(2) (including the reference number for the annuity) to the annuitant.

(10)

The relevant person must comply with paragraphs (1) to (9) within 30 days beginning with—

(a)

the date of receipt of the form referred to in regulation 5 (or, if the declaration and the other information required by the form are received on different dates, the date of receipt of the latter); or

(b)

the date of the first payment under the annuity.

(11)

The relevant person must send a true photostat copy of the form referred to in paragraph (9) to such office of Her Majesty's Revenue and Customs as the Commissioners may from time to time specify, within 3 months of the date of first payment under the annuity.

Annotations

Textual amendments

F1: Word in reg. 7(2) substituted (with effect in accordance with reg. 2(4)(5) of the amending S.I.) by The Income Tax (Purchased Life Annuities) (Amendment) Regulations 2012 (S.I. 2012/2902), regs. 1(2), 2(2)(a)
F2: Words in reg. 7(2) substituted (with effect in accordance with reg. 2(4)(5) of the amending S.I.) by The Income Tax (Purchased Life Annuities) (Amendment) Regulations 2012 (S.I. 2012/2902), regs. 1(2), 2(2)(b)
F3: Reg. 7(3) substituted (with effect in accordance with reg. 2(4)(5) of the amending S.I.) by The Income Tax (Purchased Life Annuities) (Amendment) Regulations 2012 (S.I. 2012/2902), regs. 1(2), 2(3)