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A question on top slicing relief.

A big change to calculations after 2020 budget - assume my software is correct

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A client had a substantial foreign investment bond that was encashed in July 2020, lets say the gain was £ 240,000. He also had other income of say £ 30,000.

The client asked at the time of the encashment, what the tax would likey to be. The only tax software available atthe time was for 2019/20 year, and when the figures were put through that, the taxable income was £270,000, tax on that was £107,000, and top slicing relief of £22,000, with tax due for the year of £85,000 approx.

So when this is now inputted in to the 2020 /21 tax return, taxable income and tax figures are the same but now top slicing relief is calculated at £52,000 approx and tax due of £ 54,000.

I am referencing this earlier thread. 

https://www.accountingweb.co.uk/any-answers/top-slicing-relief-8

Question - the difference here is quite significant here after the 2020 budget change, I suppose it shows the need to keep as up to date as is possible, and the lesson is to know the calculations in detail. Has anyone had similar experiences and that the calcualtions are correct?

I am assuming that the calculations are correct, and that the software is not awry in some way. 

Thanks

 

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