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
Chargeable event certificate
Fionaanne141
Posts: 73 Forumite
Hello all
Hoping for some guidance as in receivership of a chargeable event certificate for a trust in my name set up following the passing of my husband.
The trust has been in place for five years and I take a monthly income from it. It appears we’ve exceeded the 5% max withdrawal limit and received a chargeable event certificate showing the amount of gain arising from the event was £2k and notional tax £400ish. It’s never happened before and I don’t have much experience in this area so very grateful if anyone could answer my questions.
The letter states I need to let HMRC know via self assessment which i’ve never completed before. I’m a basic tax payer with a full-time salaried role. I presume i’ll now need to complete a self assessment form just for this gain? When would the deadline be for me to do this?
My mother is also named in the trust but does not benefit from it financially. Would she need to do the same?
Does this mean we both have to pay the £400ish notional tax or would it just be me as i’m the only one who receives the monthly income?
Will i have to pay the £400 back at the time of the self-assessment or will HRMC review the submission and then let me know how much is due?
Apologies for the questions and likely stupid ones. Ive only ever had salaried roles so new to self assessment and the trust was set up by my husband before his passing and has been ticking along without precious intervention (just annual reviews with trustees)
Many thanks
Fi
Hoping for some guidance as in receivership of a chargeable event certificate for a trust in my name set up following the passing of my husband.
The trust has been in place for five years and I take a monthly income from it. It appears we’ve exceeded the 5% max withdrawal limit and received a chargeable event certificate showing the amount of gain arising from the event was £2k and notional tax £400ish. It’s never happened before and I don’t have much experience in this area so very grateful if anyone could answer my questions.
The letter states I need to let HMRC know via self assessment which i’ve never completed before. I’m a basic tax payer with a full-time salaried role. I presume i’ll now need to complete a self assessment form just for this gain? When would the deadline be for me to do this?
My mother is also named in the trust but does not benefit from it financially. Would she need to do the same?
Does this mean we both have to pay the £400ish notional tax or would it just be me as i’m the only one who receives the monthly income?
Will i have to pay the £400 back at the time of the self-assessment or will HRMC review the submission and then let me know how much is due?
Apologies for the questions and likely stupid ones. Ive only ever had salaried roles so new to self assessment and the trust was set up by my husband before his passing and has been ticking along without precious intervention (just annual reviews with trustees)
Many thanks
Fi
0
Comments
-
You might not need to go on self assessment just for this. HMRC could just perform a tax calculation for you and adjust your PAYE tax code. I would suggest writing to them in the first instance including a copy of the certificate. If the gain is from 2019/20 then you'd have until early next year to file a tax return if you really needed to do so. The certificate is presumably in your name, in which case it is being treated as your gain.
0 -
Thank you for guidance. I shall send them a letter alongside the certificate. Thanks, Fiona0
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
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards