Hi all
We have a client who has received 5 such certificates in 2010/11. Three of the certificates show 'tax treated as paid' at the rate of 20% but on the other two no such amount has been mentioned. It appears that the gross amount of the gain should go into box 16 of page 3 of the tax return (Other UK Income not included on supplementary pages) and the tax should go into box 18. Is this the correct treatment? What should we do to those certificates where no amount has been deducted?
The client is in a tax refund position and if are to include the gain and the tax treated as paid, his tax refund increases. Isn't this tax notional credit only? If so how do we disclose the same? Any help would be quite appreciated.
Regards.
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Page Ai1
Chargeable events on UK life insurance policy gains go in boxes 4-11 on page Ai1.
The tax treated as paid is not refundable.
See:
http://www.hmrc.gov.uk/manuals/iptm/iptm3800.htm
http://www.hmrc.gov.uk/manuals/iptm/iptm3810.htm