There is a gain on a ‘part surrender or assignment event’, see IPTM3580, if the transaction value for the relevant transaction exceeds the amount of available premium left. There are examples of ‘transaction-related calculations’ at IPTM7625toIPTM7645.
This is the value, see
IPTM3565, as at the time of its
surrender or assignment, of the part of or share in the rights
under the policy or contract that has been surrendered or assigned.
The transaction value is reduced in some cases where the relevant transaction occurs in the ‘final insurance year’, see IPTM3590.
This is the amount, if any, by which the available net allowable payments exceed the available net total values for the year. It is taken as nil if
This is the net total allowable payments, as at the end of the ‘insurance year’, see IPTM3560. If earlier relevant transactions have taken place in the ‘insurance year’ and for the latest of them the calculation produced no gain, the sum of the transaction values for the earlier transactions is deducted from the net total allowable payments.
This is the
net total value of rights surrendered or assigned
at the end of the ‘insurance year’,
IPTM3560, but disregarding any relevant
transactions in the ‘insurance year’ that are treated
as chargeable events under the ‘transaction-related
the value, see IPTM3565, of any part of, or share in, the rights under the policy or contract that has been surrendered, or assigned for money or money’s worth, in the ‘insurance year’, taking the value as at the time of surrender or assignment.
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