IPTM7190 | Certificates to HMRC: table of excess events and part surrender or assignment events (code numbers 5, 6 & 7)

From HM Revenue & Customs · Insurance Policyholder Taxation Manual

This table is to accompany the code list in IPTM7185.Legislative references are to ITTOIA05. Section 507 is concerned with periodic calculations, that is whether there is an excess, and section 511 is concerned with transaction-related calculations.

Description	Code number for chargeable event	Notes: (part surrenders only in scenarios (a) to (h) and part assignments only in (i))
(a) Part surrender (but nothing else)	5	Test under S507. If there is an excess - single excess event at end of insurance year.
(b) Several part surrenders (but nothing else)	5	Test under S507. If there is an excess - single excess event at end of insurance year.
(c) Assignment (full or part) by way of gift followed by one or more part surrenders later in same insurance year	5	Test under S507. If there is an excess - single excess event at end of insurance year.
(d) One or more part surrenders before or after whole assignment for money or money’s worth	5	Test under S507. If there is an excess - single excess event at end of insurance year.
(e) Part surrender and part assignment for money or money’s worth in same insurance year (in either order)	6	Test under S511. There may be a part surrender or assignment event occurring on the date of the part surrender.
(f) Several part surrenders and a part assignment for money or money’s worth at any time in same insurance year	6	Test under S511. Each part surrender may be a separate part surrender or assignment event, at the date of the part surrender. Two or more part surrenders with no intervening part assignment may be reported on one certificate giving date of one of the part surrenders.
(g) Part surrender followed by a whole or part assignment by way of gift in same insurance year	6	Test under S511. There may be a part surrender or assignment event at the date of the part surrender.
(h) Several part surrenders, including at least one before a whole or part assignment by way of gift in same insurance year	6	Test under S511. Each part surrender may be a separate part surrender or assignment event at date of the part surrender. Two or more part surrenders with no intervening part assignment may be reported on one certificate at date of one of the part surrenders.
(i) As in scenarios (e) and (f): treatment of the part assignment for money or money’s worth only	7	Test under S511. Each part assignment may be a part surrender or assignment event at the date of the part assignment.