IPTM7125 - Certificate for policyholder: information to be provided: all gains other than where event is a whole assignment: ICTA88/S552(5)

Gains on chargeable events other than whole assignments

Except where the chargeable event is a whole assignment, the information to be provided on the certificate is

• the unique identifying designation given to the policy or contract - normally, the policy number will suffice
• nature of the chargeable event - see IPTM7300 onwards
• date of the chargeable event
• the amount of the gain - see IPTM7500 onwards and IPTM7600 onwards
• the ‘number of years’ - see IPTM7560. This is for the purpose of calculating the amount of top-slicing relief
• whether any income tax would be treated as paid at the basic rate on a gain and the amount of that tax, on the assumption that the person liable is an individual - see IPTM7555.

Additional information required where there is a part surrender or assignment event

Where the chargeable event is a part surrender or assignment event, that is a chargeable event within ITTOIA05/S514(1) where a transaction-related calculation shows a gain - see IPTM7625 - the certificate should also show the date on which the ‘insurance year’ ends. The ‘insurance year’ is defined in ITTOIA05/S499 and is what has been widely known as the ‘policy year’ - see IPTM3505. In these circumstances, the date of the chargeable event will almost certainly not be the same as the date on which the insurance year ends.

Gains under the personal portfolio bond (PPB) rules

When a gain arises under the PPB rules a chargeable event called a personal portfolio bond event is treated as occurring and the gain must be reported in the same way as gains on chargeable events other than whole assignments. Since no top-slicing relief is available on PPB gains, the ‘number of years’ to be reported will always be 1.

The PPB rules are in ITTOIA05/S515 onwards. There is more on PPBs and computing PPB gains in IPTM7700 onwards.