Chargeable events

Occur when certain payments are made from packaged life and investment products, e.g. certain life policy payments, bond withdrawals. They may or may not give rise to a tax charge but if they do, any resultant tax liability falls within normal income tax rules.

Chargeable gains

The gains made on a chargeable event, i.e. the excess of returns over investment from certain package products. The gains are chargeable to higher rate income tax but not the basic rate or capital gains tax (see top slicing).