RE1720 - Non-residents: relief at source: non-resident annuitants

An annuity may be paid without deduction of tax to an individual who is not resident in the United Kingdom if all the following conditions are satisfied

• The annuitant comes within one of the categories in RE1710 - RE1711
• Exemption or partial exemption is not due under a double taxation agreement
• The annuity is paid by a life assurance company or friendly society, the National Debt Commissioners, the National Savings Bank or the Public Trustee
• The annuitants income is not more than the appropriate personal allowance (RE600).

The receiving office issues the necessary authority to the payer not to deduct tax from annuity payments. Claims to relief are made on form AF which the annuitant can get from his annuity payer.

The receiving office will also authorise payment without deduction of tax where it is found on examination of a claim that relief is due. It issues the necessary authority on form R266, or in certain circumstances makes other arrangements, and sends a copy to the District on form R267.

These arrangements also relate to the income element of a purchased life annuity.