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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Calculation of gains: full surrender, maturity, death or whole assignment

The chargeable event gain on a full surrender, maturity, death or whole assignment formoney or money’s worth and, on life annuities, the taking of a capital sum as acomplete alternative to annuity payments is calculated as TB – TD – PG, where

  • TB is the total benefit value of the policy or contract
  • TD is the total allowable deductions, and
  • PG is the total of gains arising on calculation events before the current event.

These terms are explained at IPTM3510.

Further reference and feedback IPTM1013