Income Tax (Trading and Other Income) Act 2005 section 484

When chargeable events occur

Section 484 defines the specific events relating to life insurance policies, capital redemption policies and life annuity contracts that trigger a tax charge on gains.

• For all types of policy or contract, chargeable events include full surrender of rights, assignment of all rights for money or money's worth, final profit participation payments where no rights remain, and deemed events arising from periodic, transaction-related or annual personal portfolio bond gain calculations
• For life insurance policies specifically, a death giving rise to benefits or the maturity of the policy is a chargeable event; maturity also applies to capital redemption policies
• For life annuity contracts, a chargeable event occurs on death if the contract provides for a capital sum on death, or when a capital sum is taken as a complete alternative to current or future annuity payments
• These chargeable events are subject to several exemptions, including disregards for qualifying policy events, certain assignments, certain capital redemption policy maturities, and events following alterations to life insurance policy terms