Income Tax (Trading and Other Income) Act 2005 section 523

The total amount of personal portfolio bond excesses

Section 523 sets out the method for calculating the total accumulated amount of personal portfolio bond excesses over the life of a policy or contract.

• The calculation in section 522 must be applied at the end of each previous insurance year of the policy or contract, starting from the first year.
• For each year, you must determine whether the calculation produces a gain and, if so, how much that gain is.
• All gains identified across the previous insurance years are then added together to give the total amount of personal portfolio bond excesses.
• If the policy or contract has no previous insurance year during its existence, the total amount of personal portfolio bond excesses is nil.