Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Transaction-related calculations and part surrender or assignment events
514Chargeable events where transaction-related calculations show gains
1
If the calculation in section 511 shows that a relevant transaction resulted in a gain arising on the policy or contract, the relevant transaction is treated as a chargeable event.
2
Subsection (1) is subject to section 485(5) (which restricts the circumstances in which such events occur in relation to qualifying policies).
3
Subsection (4) applies if—
a
a relevant transaction that is a chargeable event occurs in a different tax year from that in which the insurance year ends, and
b
apart from subsection (4), a person would be liable to tax on the gain under this Chapter for the tax year in which the transaction occurs.
4
The gain is charged to tax under this Chapter for the tax year in which the insurance year ends instead.
5
If the relevant transaction occurs in the final insurance year, the chargeable event within subsection (1) is treated as occurring before the chargeable event that ends that year.