havinga friday moment here
individual has salary 65507
gain on overseas life policy 30k 20 years (nil tax treated as paid) - subject to income tax
dividend income 500
i have chucked this into my tax calculatiojn software and its taxed the 30k gain at 40% - to be expected
but has also given credit of 3800 for top slicing relief
can anyone advise in laymans tems why top slicing relief exists here - i had (presumbaly wrongly) presumed that as the gain was 40% whetehr its full gain or 1/20 of gain i wouldnt have expected any relief to be given? i am probably mising something very obvious here ?