Commentary

E1.453D Life insurance gains—periodic calculation: basic rules

Personal and employment tax

E1.453D Life insurance gains—periodic calculation: basic rules

E1.453D Life insurance gains—periodic calculation: basic rules

These rules do not apply in the final insurance year (see E1.453G) or where during the insurance year1:

  1.  

    •     there has been an assignment for money's worth of a part or share in the rights, or

  2.  

    •     a surrender of part of the rights followed by a gift of all or part of the rights

The rules applicable to these assignments are called transaction-related calculations (see E1.453F).

The net total value of rights surrendered

This is A + B – C, where2:

  1.  

         A is the sum of the values (as at the date of surrender or assignment) of any part or share in the rights which has been surrendered at any time in an insurance year ending after 12 March 1975 for money or money's worth3; as to the determination of the value, see

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