Schedule 2: Transitionals and savings etc. Part 9: Exempt income Paragraph 147: Annuity payments for non-taxable consideration
3685.A payment made by an individual is not exempt from income tax in the recipient’s hands under section 729 of this Act if the payment is made for non-taxable consideration unless either condition B or C in that section is satisfied. This paragraph adds a further condition which, if satisfied, renders the payment exempt in the recipient’s hands.