The general considerations which apply to the distinction between revenue and capital (¶106-000) may be subject to special considerations where will annuities are involved.

Where a settlor grants an annuity to a beneficiary under a will, it may be taxable if the payment is income in the hands of the recipient. In Brodie’s Will Trustees v IR Commrs (1933) 17 TC 432 the beneficiary received payments which the settlor had directed the trustees to raise out of capital and pay to her as income. In his judgment Finlay J said, at p. 439:

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