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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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In feb 2015 I surrendered a number of investment policies totalling

Customer Question

In feb 2015 I surrendered a number of investment policies totalling £221004 with an early surrender charge of £2210 thus receiving £218,794 which I used to pay off a mortgage. These policies were originally taken out in 2010.
The statement provided by the investment house shows that there was a capital gain of £83858 with tax accounting for £16671.
They also noted that there may be a capital gains charge arising if I am a higher rate tax payer which I am not.
I would be grateful for guidance as to what I should show on my self assessment return.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Go to page Ai1 of the additional information pages here. Put £83,858 in box 4 and put the number of relevant years as shown on the chargeable event certificate in box 5. Take a look at HS320 to see how your tax liability is worked out. The online tax return will work out whether you have any tax to pay and that will depend on the number of years that have passed since the last chargeable event or when the policy started if there have been none. I hope this helps but let tme know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi.
I'm just following up to find out if my answer helped or if you have any further questions.