Part 4Savings and investment income

Chapter 9Gains from contracts for life insurance etc.

Charge to tax under Chapter 9

462When gains arise from policies and contracts

(1)

For the purposes of this Chapter, a gain from a policy or contract arises when a chargeable event occurs in relation to the policy or contract (see section 484).

(2)

But certain chargeable events are only treated as occurring because a calculation required to be made as at a particular time shows that the gain has arisen.

(3)

See, in particular—

(a)

section 509(1) (under which a chargeable event is treated as occurring where a periodic calculation following a part surrender or assignment shows a gain),

(b)

section 514(1) (under which a part surrender or assignment is treated as a chargeable event where a calculation related to it shows a gain), and

(c)

section 525(2) (under which a chargeable event is treated as occurring where an annual personal portfolio bond calculation shows a gain).