IOM Offshore bond - tax liability on surrender?

kkgree1

Posted this on savings & investments without success.

I am a beneficiary of an IOM Offshore bond. I'm going to surrender it shortly but I've been told that it's not subject to capital gains tax but income tax on the share you surrender. IHT is being met by the estate.
From their figures, it has made £1800 gain since 2008. Between the beneficiaries this is around £163 each. I’m a basic rate taxpayer so suspect I have around £35 income tax to pay.

Can anyone advise whether my calculations are correct? Also, how do I pay this income tax?

I’d rather just inform HMRC and pay it directly if I can, rather than have to complete self-assessment (which I’ve never done before and wouldn’t know where to start!).

Cook_County

You have been told correctly; income tax on the chargeable event and this goes on a self-assessment return, so you need to register with HMRC.