RE1610 - Annuities under wills and settlements: request for special arrangements

Where you receive a request for tax not to be deducted from annuity payments check that

• the annuity is payable under

or

and

• the annuitant is unlikely to have to pay income tax. The guidance at RE1622 and the examples RE1623 will help you decide whether the annuitant is likely to have to pay income tax. That guidance is specifically about the form R89 but the same principles apply here when looking at the claimant's income and allowances. If necessary get confirmation that the claimant is unlikely to have to pay income tax from their GCD.

If the conditions listed above are met the special arrangement can apply, tell the payer that it is terminable by notice in writing as at the date of such notice. Ask him, as appropriate

• for a statement signed by each annuitant to the effect that he wishes his annuity to be paid without deduction of tax
• to produce probate of the will, or other documents, under which the annuities in question are payable

and

• to provide annually a list of the names and addresses of all annuitants to whom he proposes to pay annuities in full during the year and the amounts payable.

File all correspondence and documentation relating to the annuity in the Permanent Notes pad in the file or folder in the payer's District.

If the special arrangement is applied, give the payer relief for the annuity payments made in full.