Modifications etc. (not altering text)
C1Pt. 4 Ch. 9 applied (with modifications) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), reg. 36 (as added by S.I. 1998/3174, reg. 12 and as amended (6.4.2008) by S.I. 2008/704, regs. 1, 17(4))
C2Pt. 4 Ch. 9 applied (with modifications) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), reg. 38 (as amended (6.4.2010) by S.I. 2010/582, regs. 1, 18)
C3Pt. 4 Ch. 9: power to exclude conferred (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 61(4) (with s. 147, Sch. 17)
(1)In the case of a chargeable event within section 484(1)(a) (i) or (iii), (c), (d) or (e) (surrender of all rights, final participation in profits, maturity or, in the case of a contract for a life annuity that provides for taking a capital sum on death, death or taking a capital sum as a complete alternative to annuity payments), the value of the policy or contract is the total of—
(a)any sum payable because of the event, and
(b)in the case of a policy of life insurance or a capital redemption policy, any value or amount specified in subsection (2).
(2)The value or amount is—
(a)if a right to periodical payments arises because of the event, an amount equal to the capital value of those payments at the time the right arises, and
(b)the amount or value of any other benefits arising because of the event.
(3)Subsection (1) does not apply to a surrender treated as made under section 490 (last payment under guaranteed income bond contracts etc. treated as total surrender).
(4)In that case the value of the rights treated as surrendered is treated as being equal to the amount of the payment treated as the surrender.
(5)In the case of a chargeable event within section 484(1)(a)(ii) (assignment of all rights), the value of the policy or contract is the amount or value of the consideration for the assignment.
(6)But an assignment of a policy of life insurance or a contract for a life annuity between connected persons is treated as made for a consideration equal to the market value of the policy or contract.
(7)In the case of a chargeable event within section 484(1)(b) (death), the value of the policy is its surrender value immediately before the death.
(8)This section is subject to—
section 495 (disregard of certain amounts in calculating gains under section 491), and
section 497 (disregard of trivial inducement benefits).