Commentary

E1.454E Personal portfolio bonds—calculation of gain

Personal and employment tax

E1.454E Personal portfolio bonds—calculation of gain

E1.454E Personal portfolio bonds—calculation of gain

A calculation has to be made where a policy or contract is a PPB at the end of an insurance year (other than the final insurance year) to determine whether a gain has arisen1.

The calculation proceeds as follows2.

For the insurance year, show whether there is a gain by applying the formula:

where:

  1.  

         PP is the total amount of premiums paid up to the end of the insurance year in relation to that year

  2.  

         TPE is the total amount of personal portfolio bond excesses (see below)

  3.  

         TSG is the total amount of part

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