Capital gains on life unit trusts

Gaz_Dick

I have Phoenix Life unit trust formally (Target Life Investment Plan) maturing this year and they have informed me that they will deduct capital gains from my fund because they have to pay it on their funds, the question is can I claim this back off the HMRC as they say I can not as its not an income tax. Any help please.

xylophone

Is this a unit linked life assurance policy?
Anything here which helps? https://www.accountingweb.co.uk/any-answers/life-insurance-policy-maturing-soon

SonOf

Capital gains is a individual tax that you would pay. No the fund house/provider/insurer.  You have an annual allowance with CGT.  

Are you sure this is a unit trust and not a unit linked endowment policy?   These could suffer a chargeable gain if it is non qualifying but that is not the same as capital gain.

  

Old_Lifer

This was presumably taken -out  long ago.

Is this a policy linked to a life fund which contains property,   where the fund has a liability to tax when property is sold , so makes a small deduction from the payout made to the policyholder  and in which case it is the fund which pays the tax and you cannot reclaim it.

If this is a Qualifying policy you will have no personal liability to income tax or capital gains tax at maturity.

As  SonOf  says,  if it is non-Qualifying you may have a  chargeable gain in which even a chargeable gain certificate should be sent to you.

Gaz_Dick

Thanks that's what I have found out myself but its not a small deduction near 2K.

SonOf

Gaz_!!!!!! said:

Thanks that's what I have found out myself but its not a small deduction near 2K.

What deduction is this?  it is unclear what tax you think you have as life funds are not subject to capital gains tax.  

Old_Lifer

The problem here is that from your posts  we have little information to go on.

This appears to be a regular premium life policy (and not a single-premium bond) since  it is a 'plan' which is 'maturing'.

I  had holdings in  2 Target Group unit trusts myself in the early-mid 1970's (Target Financial & Target Growth).  Which fund was your policy linked to when you took it out ?

I would hope that you still have the policy and the associated sales literature issued at the time. Does this not mention the deduction.?