Taxes Consolidation Act 1997 section 730D

Gain arising on a chargeable event

Section 730D sets out how the taxable gain arising on a chargeable event in relation to a life policy is calculated, and identifies the circumstances in which no gain is treated as arising.

• The gain on a chargeable event is calculated using specific formulae depending on the type of event, such as maturity, full or partial surrender, full or partial assignment, or the ending of an eight-year relevant period.
• No gain arises where the assurance company holds a valid declaration of non-residence from the policyholder, or where the policyholder falls within specified exempt categories such as life companies, investment undertakings, charities, pension schemes, credit unions, or NAMA.
• Where a standard chargeable event occurs after a deemed eight-year chargeable event, the eight-year event is disregarded in calculating the gain, with adjustments made for any exit tax already paid on the deemed event.
• Special rules govern how allowable premiums are determined following partial disposals, assignments, and the transitional deemed chargeable event of 31 December 2000.