My client received incorrect chargeable gain certs

3 out of 4 certs recd through her fin adv from the same provider were wrong

Didn't find your answer?

Sorry for being so vague. The extra gain is being reported to HMRC for the years in question, and the tax will be paid. My client has asked though if there is any way she could claim compensation for valuing the chargeable gain incorrectly at the time, I have no idea who to try to get this from. The investor platform are the ones issuing the revised chargeable gains, but should the financial advisor have known they were 25% higher than reported. Does she have any way of getting compensation from the financial advisor's group. At the advice of the financial advisor, she has since transferred the offshore bond to another platform. She is a lady who now faces an extra tax charge from 2015 which had not been budgeted for.

*This question has been edited due to a request for additional amends.*

Replies (16)

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By Calculatorboy
27th Apr 2021 09:32

Thats a legal question

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By bernard michael
27th Apr 2021 09:34

Aren't copies of these also sent to HMRC ??

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Replying to bernard michael:
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By Roella
27th Apr 2021 11:57

I am reporting to HMRC. As 3 out of the 4 certificates were undervalued , the lady feels that she would like compensation but we do not know if this should be from the investment platform, or the financial advisor. Should he have known the chargeable gain was higher.

regards

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By Tax Dragon
27th Apr 2021 09:38

I don't understand the question. Comeback from what?

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Replying to Tax Dragon:
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By Tax Dragon
27th Apr 2021 10:58

In light of Basil's comment below (and absent a never-ending edit function - rightly so, half an hour is plenty) - perhaps I meant "comeback FOR what?" Not the tax, surely (unless perhaps the surrenders, partial or otherwise - were supposed to hit certain tax targets and it now transpires they missed)? Interest? Meh. Penalties? You don't say anything about them. Have there been any? Aren't there good grounds for appeal? Have these been exhausted? Etc.

What do your insurers say?

Ultimately it's your client's decision whether to seek compensation for whatever loss you haven't told us about. And that's a legal matter - for the client, not you. Pinkboy was right.

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Replying to Tax Dragon:
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By Roella
27th Apr 2021 11:58

As 3 out of the 4 certificates were undervalued , the lady feels that she would like compensation but we do not know if this should be from the investment platform, or the financial advisor. Should he have known the chargeable gain was higher.

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Replying to Roella:
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By Tax Dragon
27th Apr 2021 12:03

Compensation for what? What has she lost?

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Replying to Tax Dragon:
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By Roella
27th Apr 2021 12:25

She is now facing an extra tax charge, albeit it would have been payable at the time, but how does she know this is now the final valuation. She is trusting to a financial advisor who say this has nothing to do with him and a platfrom provider that has made 2 mistakes on one of the certificates and one on the other.

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By fawltybasil2575
27th Apr 2021 10:23

@ Roella OPO).

Whilst you ask:-

“ . . . does she have any comeback FROM (emphasis added) either the company or her financial advisor”,

I assume you mean “AGAINST” the company or financial advisor : please confirm.

It would be useful if you could please indicate the additional tax payable, for EACH tax year , arising from the under-reported chargeable event gains.

Basil.

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Replying to fawltybasil2575:
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By Roella
27th Apr 2021 12:05

Thank you

2015 reported gain £19,389. This was amended to £20,789 2 months later due to their admin error. Now due to another admin error they are saying £26,198.
2019 reported gain £40,914 which has now become £48,148.
How does she know if the latest figures are correct, should the financial advisor have known?

Sorry I do not have the extra tax figure.

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Replying to Roella:
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By Tax Dragon
27th Apr 2021 12:33

Roella wrote:

should the financial advisor have known?

IMHO no more than the accountant should have.

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Stepurhan
By stepurhan
27th Apr 2021 10:59

What comeback are you expecting?

If additional tax is due, then that would have been due regardless. There might be some scope on interest or penalties arising, but that is a legal question.

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By bernard michael
27th Apr 2021 12:08

Are the gains shown on the certificates the actual realised gains or £10k less.
If the latter she has received the correct money it's just HMRC who have suffered.
If the former she should ask the investment company for the extra £10k

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Replying to bernard michael:
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By Roella
27th Apr 2021 12:31

Thank you. The original certificates show £10k less, but she now has a letter from the platform provider saying they should have been higher, and that this should be reported to HMRC.

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By fawltybasil2575
27th Apr 2021 12:56

@ Roella (OP).

Forgive me but, since you now hold the Certificates which include the corrected figures, you SHOULD be able to calculate the additional tax POTENTIALLY payable, and thereby provide the information which I requested in my last post.

Suffice to say, in the meantime, that you should NOT, at this point, simply notify HMRC of the corrected figures, without your taking FURTHER ADVICE on the way forward: in that regard, I would state that the earlier of the two under-declarations would appear, prima facie, to be “out of time” for HMRC to seek payment.

It should certainly be possible to avoid Penalties for any additional Income Tax, on the grounds that the client HAD EVERY REASON to accept the accuracy of the previous Certificates.

The information in your 12.05 post (in relation to the years at issue) is inconsistent with that in your initial question.

There are several inter-connected issues in play here (including some partly legal) and I would, for the reasons outlined above and in intending no offence, recommend your seeking professional assistance from someone with greater knowledge of the several aspects in play.

Basil.

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Replying to fawltybasil2575:
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By Roella
27th Apr 2021 13:18

Basil - thank you for the response. I do agree, and feel very reluctant to deal with the issue. It is only due to the fact I usually help her with a simple tax return that she is turning to me. I will however advise her to seek help elsewhere.

regards R

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