230(1)Amend section 775A (transfers of rights to receive annual payments) as follows.
(2)In subsection (1), for “(4)” substitute “(2)”.
(3)For subsections (2) to (4) substitute—
“(2)This section applies to any annual payment other than—
(a)an annual payment under a life annuity;
(b)an annual payment under a pension annuity;
(c)an annual payment to which section 347A applies (certain annual payments not to form part of the income of a company for corporation tax purposes);
(d)an annual payment in respect of which, by virtue of section 727 of ITTOIA 2005 (payments by individuals arising in UK), no liability to income tax arises under Part 5 of that Act.
(3)Where this section applies, the person who sells or transfers the right to the annual payment shall be charged to tax for the chargeable period in which the sale or transfer takes place on an amount equal to the market value of the right to receive the annual payment.
(4)So far as relating to corporation tax, the charge to tax under subsection (3) has effect as an application of the charge to corporation tax on income.”