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?
- Thinning income 350 4
- Allowable for Corporation Tax? 251 6
- Bank Statement Scanning Software? 141 2
- Work to Rented Business Premises 158 1
- Not a question but made my day 1,167 23
- Directors, service companies and national minimum wage (NMW) - Profit extraction 384 11
- Employee leaving mid month and Payroll Manager 1,150 24
- IHT400 or IHT205 - disagree with solicitor 135 1
- Amending 13-14 sole trader return to reflect increased profit in 14-15 267 4
- I forgiven loan an Output? 166 2
- V T Software 216 2
- How do I know if I have to apply a reverse charge mechanism 141 3
- SA302's - What's the deal? 349 4
- tax credits 283 4
- Past rental expenses 128 1
- What do do about VAT? 553 15
- Buying a company for £2000 from owner how it works? 294 5
- Vat Exemption moving to a partnership 195 2
- Audacity 1,329 22
- Seeking advice: Paying Funeral Costs 696 8
- NHS finance professionals 599
- Auto Enrolment and Foreign employers 390
- Foreign Pension Contribution 363
- vat gross profit percentage margins 334
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 325
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 306
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 274
- Does pension term assurance count for unused relief purposes? 230
- IFA income recognition & reporting 200
- Incorporating doctors 193