Glossary · UK
What is Chargeable Event Gain?
The taxable gain arising on an investment bond — for example on full surrender or death — with top-slicing relief available.
Full Definition
A chargeable event gain (CEG) is the profit subject to Income Tax (not Capital Gains Tax) when certain events occur on a UK or offshore investment bond — full surrender, death of the life assured, assignment for value, maturity, or withdrawals exceeding the cumulative 5% tax-deferred allowance. UK bonds are treated as having paid basic-rate tax within the fund, so only higher- and additional-rate taxpayers face further Income Tax; offshore bonds have no internal tax credit so the whole gain is taxable. Top-slicing relief can reduce the bill by dividing the gain by the number of years the bond was held to test how much falls into higher-rate bands, spreading what would otherwise be a one-year spike. The gain also counts towards adjusted net income, which can affect the Personal Allowance and HICBC.