Free legislation on LexisWeb is as enacted and does not take into account any amendments
Full Table of Contents
(1) This section deals with calculating—
(a) whether a gain has arisen on a chargeable event within section 484(1)(a)(i) to (iii) or (b) to (e) (surrender or assignment of all rights, final participation in profits, death, maturity, or taking a capital sum as a complete alternative to annuity payments), and
(b) if so, the amount of the gain.
(2) There is a gain if TB exceeds the sum of TD and PG where—
TB is the total benefit value of the policy or contract (see section 492),
TD is the total allowable deductions for the policy or contract (see section 494), and
PG is the total amount of gains treated as arising on calculation events occurring in relation to the policy or contract before the chargeable event in question.
(3) The gain is equal to the excess.
(4) In this Chapter—
“calculation event” means an excess event, a part surrender or assignment event or a personal portfolio bond event,
“excess event” means a chargeable event within section 509(1),
“part surrender or assignment event” means a chargeable event within section 514(1), and
“personal portfolio bond event” means a chargeable event within section 525(2).
(5) The reference to the policy in the definition of “PG” in subsection (2) includes any related policy.
(6) For the purposes of this Chapter, a policy (“policy A”) is a related policy as respects another (“policy B”) if—
(a) policy B is a new policy (as defined in paragraph 17 of Schedule 15 to ICTA (substitutions and variations)) in relation to policy A, or
(b) policy B is a new policy (as so defined) in relation to another policy (“policy C”) and policy C is a new policy (as so defined) in relation to policy A,
and so on.
(7) See section 539 (relief for deficiencies) if there is no gain under subsection (2), but a gain arose on a calculation event occurring in relation to the policy or contract before the chargeable event in question.
(8) For the rules about calculating gains on calculation events, see—
section 507 (method for making periodic calculations under section 498),
section 511 (method for making transaction-related calculations under section 510), and
section 522 (method for making annual calculations under section 515).
This Act comes into force on 6 April 2005 and has effect, for the purposes of income tax for the year 2005–06 and subsequent tax years, and for the purposes of corporation tax for accounting periods ending after 5 April 2005: see s 883; for transitional provisions and savings see Sch 2 hereto.
Full Table of Contents
Lexis®Library
- Authoritative guides to the status of statutory provisions and their meaning from a range of titles from Butterworths, Halsbury's Statutes and TolleyView other related LexisLibrary annotations
- The current law in England and Wales, consolidated by the incorporation of amendments into existing legislation, by an expert team of editorsView Consolidated Version
- Indicates the date on which a section of an enactment was brought into force, powered by Halsbury's Is It In ForceView current status of this Act
- Cases related to this particular case that are related to, or discuss this caseView related cases
- Official explanatory notes that further explain the effects of the Act and summarise what the Act sets out to achieveView official explanatory notes
- Commentary discussing this particular case from LexisLibrary's comprehensive range of titles including Butterworths, Halsbury's and TolleyView all related commentary
- An authoritative guide to the status of statutory provisions and their meaning, including definitions, cross-references and information on commencement and amendmentView Halsbury Statutes Citator
- Subordinate legislation is made under the authority of a provision (or provisions) of an Act (or Acts) of ParliamentView all subordinate legislation
