How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

. Please advise. Last September my wife & I surrendered

Resolved Question:

. Please advise. Last September my wife & I surrendered some sub policies of a joint personnel investment plan. We have each received a 'Chargeable event certificate' .
The certificates States that the tax is treated as paid.
Is this actuall the case or do we owe this amount.
I pay tax on my pensions but my wife's pensions do not put her in a tax situation.
Do I have to send these certificates off or are they issued
Thanking you in anticipation
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

.

The tax treated as paid is exactly that. You don't have to pay it to HMRC. The following applies to each of yourself and your wife:

Take a look at HS320 here. Divide the gain by the number of relevant years as shown on the certificate. Add that figure to your other income /15. If the total is over £41,865 then you need to disclose the gain and you will have some more tax to pay.

If you are over state pension age, the gross gain is treated as income purposes of age allowance so you may lose some of your age allowance if your income in 2014/15 including the gross gain is more than £27,000 and you were born before 6 April 1948.

I hope this helps but let me know if you have any further questions.

Customer: replied 2 years ago.
Thank you very much that has taken a weight off my mind,didn't want to receive any unexpected bill.
Expert:  TonyTax replied 2 years ago.
Thanks.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions