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Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

How are Chargeable Events calculated & who is liable?

Chargeable events most commonly arise where there has been an excessive withdrawal or one or more policies has been surrendered.

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How is a chargeable event calculated?

Depending on the event type, the chargeable event calculation can differ. For example:

  • a surrender event calculation is based upon the final surrender value paid out, whereas
  • on a death event, the value of the plan the day before death is used

Information for how each event type is calculated can be found in our How is a Chargeable Event Calculated guide.

Who is liable for a Chargeable event?

UK resident trustees and individuals who are the owners of an offshore plan are subject to the chargeable event legislation.

Please note that any chargeable event gains or excesses are subject to Income Tax and not Capital Gains Tax (CGT).

Companies are no longer subject to the chargeable event legislation.

For further information detailing who is responsible to pay the tax liability please refer to our UK Taxation guides below.

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