»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp following rules apply where

• a part of, or share in, the rights under a policy or contract is surrendered, or
• a part of, or share in, the rights under a policy or contract is assigned for money or money’s worth.

A calculation is made at the end of the ‘insurance year� - see IPTM3505 - in which the surrender or assignment occurs to determine whether a gain has arisen and, if so, its amount.

»Ê¹ÚÌåÓýappse events may variously be described as part surrenders, part withdrawals, or an ‘excessâ€�. »Ê¹ÚÌåÓýapp meaning of ‘excessâ€� is described at IPTM3555. Sometimes the term ‘allowable aggregateâ€� is encountered which refers to the 5% allowable element rule discussed at IPTM1510 and IPTM3560.

»Ê¹ÚÌåÓýappre is a practical explanation of how ‘excess eventsâ€� arise, with examples, at IPTM7615 onwards.