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.