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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Part surrenders and assignments: periodic calculations and excess events

  • Section 498 Requirement for periodic calculations in part surrender or assignment cases
  • Section 499 Meaning of “insurance year” and “final insurance year”
  • Section 500 Events treated as part surrenders
  • Section 501 Part surrenders: loans
  • Section 502 Exception from section 501 for loans to buy life annuities
  • Section 503 Exception from section 501 for certain loans under qualifying policies
  • Section 504 Part surrenders: payments under guaranteed income bonds etc.
  • Section 505 Assignments etc. involving co-ownership
  • Section 506 Assignments occurring when there is a co-ownership transaction
  • Section 507 Method for making periodic calculations under section 498
  • Section 507A Recalculating gains under section 507
  • Section 508 The value of rights partially surrendered or assigned
  • Section 509 Chargeable events in certain cases where periodic calculations show gains
  1. Part surrenders and assignments: periodic calculations and excess events
  2. The value of rights partially surrendered or assigned

Section 508 | The value of rights partially surrendered or assigned

From legislation.gov.uk

(1)For the purposes of sections 507, 511 and 512, where any part of or share in rights conferred by a policy or contract is surrendered, the value of the part of or share in the rights surrendered is the amount or value of the sum payable or other benefits arising because of the surrender, except where subsection (2) or (3) applies.

(2)In the case of a surrender within section 500(c) (loans by insurers to which section 501 applies), the value for those purposes is an amount equal to the loan.

(3)In the case of a surrender within section 500(d) (payments by insurers under guaranteed income bonds etc.), the value for those purposes is the amount to which section 504 applies.

(4)For the purposes of sections 507, 511 and 512, where any part of or share in rights conferred by a policy or contract is assigned, the value of the part or share as at the time of the assignment is its surrender value at that time.

(5)For the requirement to ignore certain benefits, see section 497 (disregard of trivial inducement benefits).

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