Part 4

Savings and investment income
Chapter 9

Gains from contracts for life insurance etc.

When chargeable events occur: general

When chargeable events occur
484
1
The following are chargeable events—
a
in the case of any kind of policy or contract—
i
the surrender of all rights under the policy or contract,
ii
the assignment of all those rights for money or money's worth,
iii
the falling due of a sum payable as a result of a right under a policy or contract to participate in profits, if there are no remaining rights under it,
iv
a chargeable event treated as occurring under section 509(1) (chargeable events in certain cases where periodic calculations show gains),
v
a surrender or assignment treated as a chargeable event under section 514(1) (chargeable events where transaction-related calculations show gains), and
vi
a chargeable event treated as occurring under section 525(2) (chargeable events where annual personal portfolio bond calculations show gains),
b
in the case of a policy of life insurance, a death giving rise to benefits under it,
c
in the case of a policy of life insurance or a capital redemption policy, its maturity,
d
in the case of a contract for a life annuity which provides for the payment of a capital sum on death, the death, and
e
in the case of a contract for a life annuity which provides for a capital sum to be taken as a complete alternative to the annuity payments (or any further annuity payments), taking the capital sum.
2
Subsection (1) is subject to—
- section 485 (disregard of certain events in relation to qualifying policies),
- section 486 (exclusion of maturity of capital redemption policies in certain circumstances),
- section 487 (disregard of certain assignments), and
- section 488 (disregard of certain events following alterations of life insurance policy terms).
3
See also section 490 (last payment under guaranteed income bonds etc. treated as total surrender).
Pt. 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))
Pt. 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)
Pt. 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)