Commentary

E1.452 Life insurance gains—calculation of gain

Personal and employment tax

E1.452 Life insurance gains—calculation of gain

E1.452 Life insurance gains—calculation of gain

The general rule is that a gain on chargeable event (see E1.451) is:

TB – (TD + PG)

where1:

  1.  

         TB is the total benefit value of the policy or contract (see E1.452A)

  2.  

         TD is the total allowable deductions (see E1.452B), and

  3.  

         PG is the amount of any gains arising on a previous partial surrender or assignment (see E1.453–E1.453G) of the policy (including a related policy) or contract, but see below

In the calculation of PG, the previous partial surrender or assignment has to be one taken into account in calculating total income of a

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