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Section 522 Method for making annual calculations under section 515

(1)

This section deals with the calculation required to be made in relation to a policy or contract as at the end of an insurance year under section 515 to determine—

(a)

whether a gain has arisen in relation to that year, and

(b)

if so, the amount of the gain.

(2)

There is a gain if, as at the end of the insurance year, the sum of PP and TPE exceeds TSG.

(3)

In subsection (2)—

  • PP is the total amount of premiums paid up to the end of the insurance year,

  • TPE is the total amount of personal portfolio bond excesses (see section 523), and

  • TSG is the total amount of part surrender gains (see section 524).

(4)

The gain is equal to 15% of the excess.

Notes on Chapter 9

Modifications

C1

Pt. 4 Ch. 9 applied (with modifications) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), reg. 36 (as added by S.I. 1998/3174, reg. 12 and as amended (6.4.2008) by S.I. 2008/704, regs. 1, 17(4))

C2

Pt. 4 Ch. 9 applied (with modifications) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), reg. 38 (as amended (6.4.2010) by S.I. 2010/582, regs. 1, 18)

C3

Pt. 4 Ch. 9: power to exclude conferred (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 61(4) (with s. 147, Sch. 17)