Commentary on Sections Structure of Chapters Overview Section 500: Events treated as part surrenders
1976.This section deals with some circumstances that would not otherwise be regarded as a surrender of part of the rights under a policy or contract. Paragraph (a) is based on section 539 of ICTA, paragraph (b) on section 542 of ICTA, paragraph (c) on section 548 of ICTA and paragraph (d) on section 79 of FA 1997.
1977.Note that an “event” within this section is not a “chargeable event”, unless:
	the calculation under section 507 results in a gain; and
	there is a chargeable event by virtue of section 509 or section 514.
1978.Paragraph (b) makes explicit the treatment of the circumstance where a capital sum is taken as an alternative to part of annuity payments under a contract for a life annuity. See Change 93 in Annex 1.
1979.See also section 546 (table of provisions subject to special rules for older policies and contracts).