We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
IOM Offshore bond - tax liability on surrender?
kkgree1
Posts: 328 Forumite
in Cutting tax
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!).
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!).
Mortgage free wannabe
Mortgage (November 2010) £135,850
Mortgage (November 2020) £4,784
0
Comments
-
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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards