A necessary but not an exclusive factor in determining whether a payment is an annual payment is that it must have a recurring nature or be capable of recurrence. In IR Commrs v Whitworth Park Coal Co Ltd38 TC 531, Lord Radcliffe commented:

‘… I think that it would be both bad logic and bad law to deduce that merely because a payment is in fact recurrent or capable of recurrence it is therefore to be treated as an annual payment.’

However, it is an important element, as Viscount Simonds observed in the same case because payments which in the ordinary sense of the words might be called annual payments might otherwise come within the charge to tax.

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