David provided for a payment of €3,600 per year to his sister Aileen, for seven years.
|Annual annuity value
|Return on relevant Government Stock
|Price per unit of stock on valuation date
As Aileen will receive this benefit for just seven years, she must multiply the value by the relevant factor.
Calculate taxable value of Aileen's annuity
|Annuity divided by stock return
||3,600/(14.5 x 100)
|Multiplied by price per stock unit
||€24,828 x €0.84
|Multiplied by the relevant factor
||€20,856 x 0.3770