Chargeable Events on a Share Disposal?
A client's father has recently died who held a group of shares with his bank (cost £32k). The client has done some research on the subject and the bank and HMRC have told her that the disposal is not a capital gain due to the fathers death (or something similar) and is in fact a chargeable event.
Now I've only brushed this briefly in my CTA studies as it's not a popular subject nor is it a very common tax area in practice, but now it's come up, I need some assistance to fully understand the implications of this.
The client has always been a basic rate taxpayer and has only had pension income which has put him no where near the higher rate bracket. I read that if they were a basic rate taxpayer, then the tax on the qualifying gain from the share disposal is already paid for and therefore there is no tax liability nor does the client even have to do anything regarding Self Assessment.
The shares were disposed for around £43 so the gain on the policy was only £11k. Shame it's not a capital disposal as the resulting CGT would have been a poxy £209 after the annual exemption, I'm just hoping there's no massive liability as a result of the gain.
Please can someone clarify why it's a chargeable event and also whether my assumptions are correct on there been no tax to pay or any SA requirement?
- Deferred Tax 418 7
- Benefit in Kind 182 5
- You know its over 420 5
- Am I getting Soft?? 114 8
- Foreign pension tax credit relief 127 1
- Petrol expenses for self-employed 200 3
- Wrong tax code 72 4
- RTI and corrections to payroll 1,257 14
- Co. limited by Guarantee now closed 222 1
- Cocaine anyone? 581 10
- Accounting for cash put into Ltd 109 2
- Dutch and Germany VAT 175 3
- can anyone recommend Turkish speaking accountants in London 296 2
- Depression - HMRC penalties case won because of this illness. 480 15
- LTD home office - would HMRC seek to disallow 1,296 8
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 997 29
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 532 9
- How do you find shareholders of a Cyprus Company ? 263 13
- Valuing my fast-growing internet business for transfer of goodwill on incorporation 219 2
- HMRC won't let me set up online DD for PAYE 205 2
- Hive up 498
- Accounting referance change & deficient accounts. 467
- corporate hierarchy 447
- Advice - 284
- Anyone had HMRC refusing to act on EPS database glitch? 230
- WWOOFers 225
- Art Gallery - Splitting a property between business and personal use 211
- Tax liabilities in USA for warehoused products 189
- Mutual Trading - Exempt CT Income - Do I need clearance? 187
- UK State pension paid in NZ 160