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Any news on changes re calculation of tax on pre budget insurance bond gains?

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My client had an insurance bond with Standard Life which she encashed in 2017-18. On HMRC's calculation the gain put her income well above £100k thus wiping out her personal allowance and greatly increasing her income tax liability. She has sent me a note from the insurance company referring to the "Silver" FTT case, setting out the current position and confirming that as yet there is no indication of a change in approach by HMRC to the tax liability calculation of pre 2020 budget gains. She has asked as to her options. Those are clear and so I do not propose to rehearse them here. My question is twofold, "Have I missed anything recently and if not does anyone have any inclination or knowledge of anything in the pipeline as to a change in approach by HMRC to those pre 2020 budget gains?"

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By lionofludesch
13th May 2020 17:38

I haven't got anyone affected - but did the taxpayer not win and HMRC declined to pursue it further, largely on the grounds of being wrong ?

Whilst this is big bucks for any taxpayer in that position, I would imagine it's small beer in HMRC terms.

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Replying to lionofludesch:
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By GamekeeperTurnedPoacher
13th May 2020 17:58

Thanks lionofludesch,
Yes Mrs Silver did win but HMRC indicated that they would appeal but a few days after the budget announced that they had withdrawn the appeal. Presumably that means that the lady may apply to have her liability re-calculated generating an income tax repayment if she had paid up or the cancellation of the "additional tax " if she hadn't.
The problem is that she won at the First Tier Tribunal which is not binding on any other case and so does not constitute a precedent.
The proposal in the budget only relieves gains arising on or after budget day and so as matters stand pre budget gains are still caught unless the taxpayer appeals and wins but technically HMRC could appeal that FTT decision and though it might seem unlikely win at the Upper Tribunal potentially closing off all other appeals by those with pre budget gains.

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Replying to Wanderer:
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By GamekeeperTurnedPoacher
14th May 2020 10:12

Thanks Wanderer but I was aware of the article. It doesn't change my client's situation. Please see my response timed at 17:58 on Wednesday 13 May 2020 to lionofludesch

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By [email protected]
13th May 2020 17:48

I put in a protective claim where the difference to my client between losing the personal allowance and the new approach was £38k in tax, back in August(?) last year when the original tribunal decision was reached. I sent in a further claim in February after HMRC announced the change in legislation. I have still heard nothing from HMRC, but did chase them again last week.

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Replying to [email protected]:
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By GamekeeperTurnedPoacher
14th May 2020 10:13

Thanks [email protected][***]

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