Date of chargeable gain

Which tax year should the chargeable gain be allocated to

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My client has surrendered an off shore insurance policy and has a chargeable gain. He received the gain into his bank account on 30th March 2021 but the certificate he has forwarded to me is dated 3rd May 2021. Should it be included in his tax return for the year ending 5th April 2021 or in this current tax year? Advice would be appreciated.

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By Michael Beaver
11th May 2021 16:49

At what date did the insurance policy cease? I would use that date.

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By Wanderer
11th May 2021 17:12

Was it a full surrender? If so then take it as the tax year in which the surrender takes place, so probably 2020/2021.
If only a partial surrender then you look to the end of the insurance year. If that's 03/05/2021 then it's 2021/2022.

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By Hugo Fair
11th May 2021 18:54

".. the certificate he has forwarded to me is dated 3rd May 2021."

What other dates appear within the documentation?
I'm looking at one (obviously they will all differ depending on issuer) - which has a "Date" (of covering letter), a statement as at "date", a valuation summary as at "date", and (because they're nice people) "Period start date", "Period end date" and "Payment date".

It would be unusual (to say the least) for payment to take place before the liability to pay it has occurred ... so in the absence of anything to contra-indicate this I would use the payment date.

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Replying to Hugo Fair:
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By Wanderer
11th May 2021 19:11

Hugo Fair wrote:

It would be unusual (to say the least) for payment to take place before the liability to pay it has occurred ... so in the absence of anything to contra-indicate this I would use the payment date.

That depends on the partial / full point made in my post above.

It is very common to have a payment date in one tax year but the gain taxable in the next tax year.

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Replying to Wanderer:
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By Hugo Fair
11th May 2021 19:59

Quite agree. I wasn't trying to contradict your post, merely to expand the OP's use of the word 'date' when reviewing the certificate.
I guess this is yet another example to support TD's concern when I try to provide even a direction of travel without making all assumptions explicit (although I tried when I said "in the absence of anything to contra-indicate this")!

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