Taxes Consolidation Act 1997 section 730C

Chargeable event

Section 730C defines "chargeable event" for the purposes of the life assurance exit tax regime, and sets out the assignments that are excluded from being chargeable events and the rules for valuing death or disability benefits.

• A chargeable event arises on the maturity, surrender, or assignment of a life policy, or on the ending of each eight-year relevant period from inception.
• Certain assignments are excluded, including assignments as security for a debt, assignments between spouses or civil partners, and assignments made under court orders on divorce, dissolution, or judicial separation.
• Where a life policy pays benefits on death or disability, only the investment gain element — measured by the fall in the policy's value — is subject to exit tax.
• If an assurance company that could have elected under section 730A(2) to remain on the old basis did not do so, a chargeable event is deemed to occur on 31 December 2000 for policies issued before that date.