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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. a 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 policy the day before death is used.

Calculations of each event type with supporting examples can be found in our Guide to how a Chargeable Event is calculated.

Who is liable for a Chargeable event?

UK resident trustees and individuals who are owners of an offshore bond are subject to Chargeable Events legislation.

Please note that any chargeable event gains or excesses are subject to income tax.

Companies are no longer subject to the chargeable events legislation.

For further information detailing who is responsible to pay the tax liability on bonds held in trust, please see our Guide to Offshore Bonds for Trustee Investments.