Part 4

Savings and investment income
Chapter 9

Gains from contracts for life insurance etc.

Calculating gains: general

The total benefit value of a policy or contract
492
1
To calculate the total benefit value of a policy or contract for the purposes of section 491, add together—
a
its value in accordance with section 493,
b
any capital sum paid under the policy or contract before the event,
c
the value of any other benefit of a capital nature conferred by the policy or contract before the event,
d
the amount of any loan made before the event, the making of which is treated as the surrender of a part of the rights under the policy or contract under section 500(c) (loans by insurers to which section 501 applies),
e
in the case of a guaranteed income bond contract, as defined in section 504(7), any amount paid before the event, the payment of which is treated as a surrender of a part of the rights under the contract under section 500(d) of this Act (payments by insurers under such contracts), and
f
in the case of an assignment, the amount or value of any share in the rights under the policy or contract that was assigned before the event.
2
References to the policy in subsection (1)(b) to (e) include any related policy.
3
This section is subject to—
- section 495 (disregard of certain amounts in calculating gains under section 491), and
- section 497 (disregard of trivial inducement benefits).
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)