investment bond - top slicing - tax due

354 Posts

Hi All,
I'm completing my tax return online and have added the gain from my cashed in onshore investment bond (used to help buy a house) and am getting an amount of tax in the calculation. Which is confusing, as I was told I wouldn't need to pay any tax on it after taking into account my low income and the top slicing relief based upon how many years it's existed.
Can anyone advise on this? maybe I've added something incorrectly? Or got bad advice? Or the calculation is wrong?
I'm not sure if am allowed to add details here / or what I should add though...
Thanks all!
UPDATE: See last post for latest and recap of issue.
I'm completing my tax return online and have added the gain from my cashed in onshore investment bond (used to help buy a house) and am getting an amount of tax in the calculation. Which is confusing, as I was told I wouldn't need to pay any tax on it after taking into account my low income and the top slicing relief based upon how many years it's existed.
Can anyone advise on this? maybe I've added something incorrectly? Or got bad advice? Or the calculation is wrong?
I'm not sure if am allowed to add details here / or what I should add though...
Thanks all!
UPDATE: See last post for latest and recap of issue.
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(Ha sido divertido)
(Ha sido divertido)
(Ha sido divertido)
I earned less than 28k during that tax year. The gain is 85k but held for 11 years and basic rate tax paid. I was told top slicing is dividing the gain by the years held - so 7727, then adding that to my income that year - so 35727, and because that total is less than higher rate tax, nothing extra should be due...
But the return has suggested that I owe approx 1300.
Have i been misinformed about how this works?
(Ha sido divertido)
minus - Top Slicing Relief
minus - Notional Tax from Gains on Life Policies etc
(Ha sido divertido)
Minus top slicing relief - 13930
minus notional tax from gains - 17184