Taxation of Bequeathed 10-year Annuity Guarantee Lump Sum

BobWelham

Suppose Adam purchases an annuity of say £10,000 p.a. with a 10-year guarantee.
Adam nominates his wife Bella to receive any lump sum due under this guarantee.
Unexpectedly, and almost immediately after purchasing the annuity, Adam then suddenly drops dead.
Bella is then paid a lump sum of (possibly a little less than?) 10x £10,000, i.e. £100,000.

Assuming that Adam's estate is well above the IHT threshold of £325,000, is this lump sum subject to IHT?
And/or is it subject to Income Tax at Bella's marginal rate?

DullGreyGuy

A wife is a poor example because of the special treatment for IHT anyway

https://www.mandg.com/pru/adviser/en-gb/insights-events/insights-library/death-benefits-annuity#:~:text=when they died.-,Joint life, nominee or successor's annuities, annuity protection lump sums,be subject to inheritance tax.

Per the above, the income tax element depends on the age of the annuitant 

BobWelham

Thanks, DGG.  I had tried various internet searches but had not come across the very informative Pru pages on this very subject..
(Good point about Bella being Adam's wife - my bad.)