Chargeable event on death - do we owe tax?

dunstonh

Malthusian was referring to post #5 where the person was a higher rate taxpayer and all of the gain falls within the higher rate band. So, top slicing would not apply as said.

Malthusian

...which should have been fairly clear as the post I replied to started with "Reply to Liketocheckthefacts".

Malthusian

lindabea wrote: »

Are you sure? What's special about this calculation?

Nothing.

The special calculation is where top-slicing does apply, i.e. where you are a basic rate taxpayer and the unsliced gain would take you into the higher rate tax band. Or the same for higher / additional rate.

In all other calculations, e.g.

• gains wholly within the higher rate or additional rate tax bands
• withdrawal of personal allowance
• withdrawal of age-related personal allowance when it was still a thing
• personal savings allowance reduction to £500 or £0
• child benefit tax charge
• trusts, corporates and personal representatives
• all the ones I have forgotten

it does not.

Top-slicing is the special circumstance.

Insurance bond taxation is complicated and full of traps. As a rule I never comment on requests for help with bond tax calculations because there is too much chance that the OP has not disclosed something relevant. In the two cases I commented on it was straightforward so I posted a very limited and specific reply. Anyone who is considering making a signficant withdrawal from an insurance bond should take professional advice.

lindabea

Malthusian - sorry; I didn't mean to doubt your knowledge. I started reading this thread from the end, especially as it was an old one, and I just focused on your post in #8. Consequently, I totally lost the whole meaning of what you were referring to. My sincere apologies

Malthusian

No apology necessary, it is always confusing when a thread starts with one issue and people start talking about a totally different one