IPTM1520 - Outline of the chargeable events regime: focus on the policy, calculate the gain and attribute it

The computational provisions focus on the policy and its history, including, in the case of a policy acquired by assignment, factors arising from partial surrenders or assignments that took place during the pre-acquisition period. In general, each policy is considered separately under the chargeable events regime, even if it is sold as part of a package or cluster. It is only when gains are attributed to persons for taxation purposes that they are, where appropriate, brought together. The only exception is ’related policies’, where one policy is replaced by another, for example on the exercise of a maturity option. More about related policies at IPTM3525.

The regime proceeds by

• identifying a ‘chargeable event’
• calculating the gain arising
• attributing the gain to a chargeable person.