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?
- Homing sandwiches 376 10
- CT600 44 2
- signature required 445 21
- Director Personal Bank Account in company's books 490 9
- How do I undo the work of a Macro in Excel 159 5
- Settlement discount 54 3
- Director appointment not valid - any observations? 89 5
- A number of Clearbooks VAT return issues! 154 2
- VAT on hotel payments received in advance 93 2
- Pratice Management Software 51 1
- Norwegian p45, which UK Tax return does it go into 191 10
- Left UK in 2006 but did not declare rental income since 2009 109 1
- VAT rate charged by surveyor 178 2
- Related Party Transactions 104 2
- UK resident receiving USA pension 87 1
- EU eservices VAT change imminent 461 9
- Sage payroll alternatives 754 13
- More AE! 758 17
- Web sites 242 3
- ethical- to continue to act or not? 606 13
- Auto enrolment excuses 1,232
- Feedback on accounts production software for IFRS 810
- Add T&Cs to Sales Order in Sage 511
- Digita Hosted Software 334
- Credit where credit's due....... 307
- Buying goods in US and selling them to company in US 234
- Flat rate VAT- other income calculation 187
- TheTax Donut 174
- Double taxation relief - same income, different individual 156
- Corporation Tax return - more than one trade 156