IPTM3595 - Chargeable events: calculating gains: part surrenders and part assignments: ‘transaction-related calculations’: chargeable event

If the calculation at IPTM3585 shows a gain, the relevant transaction will be treated as a chargeable event, a ‘part surrender or assignment event’, unless the policy is a qualifying one, which may have the effect of restricting the circumstances in which chargeable events are treated as occurring, see IPTM3310.

The gain is charged for the chargeable period in which the ‘insurance year’ to which the transaction relates ends, even though under IPTM3580 the chargeable event is not treated as occurring at the end of the ‘insurance year’.

If, however, the relevant transaction occurs in the ‘final insurance year’, the related chargeable event is treated as occurring before the chargeable event that ends the ‘insurance year’.