Life annuities are sold by specialist plan providers and normally form part of a home income plan. Interest paid on a loan to purchase a life annuity attracts income tax relief (see ¶3050) if the following conditions are satisfied:

(1)the loan must have been made before 9 March 1999;

(2)the loan must be made as part of a scheme under which at least 90% of the loan is applied in purchasing a life annuity ending with the death of the borrower or the survivor of the borrower and two or more annuitants;

(3)at the time the loan is made, the borrower and any other annuitant must be at least 65 years old;

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