Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Part surrenders and assignments: periodic calculations and excess events
509Chargeable events in certain cases where periodic calculations show gains
1
If the calculation in section 507 shows that a gain has arisen as at the end of the insurance year, the gain is treated as arising on the occurrence of a chargeable event at the end of that year, unless condition A, B or C is met.
2
Subsection (1) is subject to section 485(3) (which restricts the circumstances in which such events occur in relation to qualifying policies).
3
Condition A is that during the insurance year there has been an assignment for money or money's worth of part of or a share in the rights conferred by the policy or contract.
4
Condition B is that during the insurance year there has been both—
a
a surrender of part of or a share in the rights conferred by the policy or contract, and
b
a later assignment, otherwise than for money or money's worth, of the whole or part of or a share in the rights conferred by the policy or contract.
5
Condition C is that the insurance year is the final insurance year.
6
See section 510 (transaction-related calculations in certain part surrender and assignment cases) if one or both of conditions A and B are met.