Tax on matured endowment?

Juliet68

Oh having to do them for the next few years will be a pain. I have to wait until next April I assume before I can do it.

BoGoF

Yes, as the chargeable event took place this tax year 17/18 which doesnt end till 5/4/18 you cannot complete a Tax Return till after this date. You could inform HMRC now that you will need one so it gets issued to you next April.

My advice would to complete it asap after you get it so you can advise Aviva what's due. The tax wont be payable until 31/1/19 but despite the letter from Aviva HMRC will treat it as your liability so best give Aviva as much notice as possible.

Juliet68

After prompting Aviva on Tuesday, they rang me yesterday and confirmed that the change they made to the policy turned it into a non qualifying policy and that they will refund whatever income tax I have to pay. They are sending me a new chargeable event certificate as the first one was slightly wrong and a letter telling me what to do to get the money back. So a good result.

I'm not sure if HMRC as they will know about the event will just write to me next year telling me how much to pay.

TrickyDicky101

Juliet68 wrote: »

After prompting Aviva on Tuesday, they rang me yesterday and confirmed that the change they made to the policy turned it into a non qualifying policy and that they will refund whatever income tax I have to pay. They are sending me a new chargeable event certificate as the first one was slightly wrong and a letter telling me what to do to get the money back. So a good result.

I'm not sure if HMRC as they will know about the event will just write to me next year telling me how much to pay.

It would be a good idea to call them up and explain that you have a chargeable event which may carry you into higher rate tax and do you therefore need to complete a self assessment form - this would then ensure you don't get hit with a penalty by HMRC for non-submission. Self assessment is pretty straightforward (especially as it sounds like you have no other complicating factors) so it isn't anything to be concerned about.