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  • FIRST POST
    • MargaretO
    • By MargaretO 13th Oct 16, 7:55 PM
    • 1Posts
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    MargaretO
    Who is liable for tax on a 'chargeable event'?
    • #1
    • 13th Oct 16, 7:55 PM
    Who is liable for tax on a 'chargeable event'? 13th Oct 16 at 7:55 PM
    My mother passed away in August 2015. She was the policy holder for a Prudential investment bond that she and my dad set up to benefit my two daughters. On her death the bond was wound up and paid out to my two daughters equally. I have received a ‘chargeable event certificate’ relating to this and am not sure what to do with this.

    Primarily I am not sure who the tax liability falls on. It appears, from the wording of the certificate that it would be the policy holder, my mother, but she is deceased. Do I need to fill out a tax return in my deceased mother’s name? Or does the tax liability fall onto the beneficiaries ie my daughters? Or am I liable as a trustee of this bond and in that case do I have to enter the information on the certificate on my own self-assessment form?

    I am finding the whole thing very hard to understand!
Page 1
    • MichelleUK
    • By MichelleUK 13th Oct 16, 10:02 PM
    • 129 Posts
    • 93 Thanks
    MichelleUK
    • #2
    • 13th Oct 16, 10:02 PM
    • #2
    • 13th Oct 16, 10:02 PM
    Margaret, this should be able to help you:

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/taxation_uk_investment_bonds/

    ... not very exciting reading I'm afraid!
    • purdyoaten2
    • By purdyoaten2 14th Oct 16, 7:46 AM
    • 467 Posts
    • 206 Thanks
    purdyoaten2
    • #3
    • 14th Oct 16, 7:46 AM
    • #3
    • 14th Oct 16, 7:46 AM
    Margaret, check the wording on the chargeable event certificate. Does it state that basic rate tax is deemed paid?

    On chargeable events there is normally no further tax to pay unless the policy holder is a higher rate taxpayer. Even then reliefs are available.
    purdyoaten lost his password
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