A periodic calculation is required at the end of an insurance year (see ¶344-160) during which a part-surrender (see ¶343-520) or a part-assignment (see ¶343-580) has occurred (ITTOIA 2005, s. 498(2)).

The calculation requires the ‘net total value of rights surrendered or assigned’ to be compared with the ‘net total allowable payments’ and a gain is deemed to arise if the value of the rights exceeds the allowable payments (ITTOIA 2005, s. 507(2), (3)).

Net total value of rights surrendered or assigned

This is:

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

No subscription?

Contact us to discuss your requirements.