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Self assessment - certificate of chargeable event

Should notional tax on a chargeable gain be refunded in a SA tax return where BR is paid

I have a certificate of chargeable event showing a gain of £684, notional tax £137 (amount paid £534.10) no of years 28.

When I enter on the SA tax return, £684 is shown as "Gains on life policies" Nil rate and the notional tax is credited to the account.  I thought that tax on a chargeable event was not  refundable or has the rules changed.  I have read the notes to the additional information where the gain is reported but cannot see anything saying that it is not taxable.  BR is used for other income, and the £684 does not push income over the 20% threshold.  


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06th Dec 2018 08:52

Is it showing a repayment or is it just deducting it from a liability ?

They're not the same thing.

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By Roella
to lionofludesch
06th Dec 2018 18:29

Thank you for responding. They state "income tax due ", then minus notional tax from gains on life policies etc.

best regards Roella

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06th Dec 2018 09:09

We would need the other income / tax deducted figures to fully understand the issue.

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By Roella
to Wanderer
06th Dec 2018 19:15

Hi - thank you. Figures from the return: Foreign income £1054, divs £827, Interest £8, Pensions £34856, Gain£684, after p.a income is £25,929.
£24, 410 taxed at 20% =4,882, divs nil rate, but then the interest and the gain are added together and taxed at nil rate. This means tax is the £4,882 but then marriage allowance trsf is deducted £230, and then notional tax of £136.80 from gains is deducted. Meaning the PAYE tax figure is 4,515.20. Tax already paid £4446 - tax due £69.20. I would have expected a tax charge of £210 as the foreign pension is received gross. Thank you for your help regards - Roella

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06th Dec 2018 16:15

Online filing exclusion 80:-

When a customer has a chargeable event gain on a life insurance policy, they are treated as having suffered tax on the gain at the basic rate. They therefore receive relief for this tax already paid. The calculator is producing an incorrect result where a customer has an amount of notional tax that exceeds the tax chargeable on the gain and is effectively relieving tax charged on other income; Relief for the notional tax in the current calculation will be overstated and putting it right will increase the customer’s liability subject to interaction if the Top Slicing Relief calculation is also incorrect (see Exclusion 81).
This is identifiable:
WHEN AOI4 + FOR43 > 0
AND c5.82 > £0
AND c8.26 > lower of (c9.23 and ((c6.52 * 0.20) + (c6.55 * 0.40) +
(c6.56 * 0.45))
AND (c6.48 + c6.51 > £0)
AND (c5.82 x 20% > (c6.52 x 20% + c6.55 x 40% + c6.56 x 45%))
AND c9.1 > (c6.52 x 20% + c6.55 x 40% + c6.56 x 45%)

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