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Payments on Account
Mothman
Posts: 290 Forumite
in Cutting tax
Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.
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Comments
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You/he can make a claim to reduce the 2022:23 POA but if it turns out the tax owed for 2022:23 was greater than you estimate (for any reason whatsoever) then the POA will be reinstated (up to a maximum of the original amount) and you will be charged late payment interest.0
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May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.[Deleted User] said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.[Deleted User] said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
Maybe there will be a "silver" lining??[Deleted User] said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.[Deleted User] said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
Lost on me🤷♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k.Dazed_and_C0nfused said:
Maybe there will be a "silver" lining??[Deleted User] said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.[Deleted User] said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
https://www.att.org.uk/news-events/news/top-slicing-changes[Deleted User] said:
Lost on me🤷♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k.Dazed_and_C0nfused said:
Maybe there will be a "silver" lining??[Deleted User] said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.[Deleted User] said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.1 -
Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.Dazed_and_C0nfused said:
https://www.att.org.uk/news-events/news/top-slicing-changespurdyoaten2 said:
Lost on me🤷♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k.Dazed_and_C0nfused said:
Maybe there will be a "silver" lining??purdyoaten2 said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.purdyoaten2 said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
Although maybe it's only the slice applicable to 2021:22 that took the op over £100k?purdyoaten2 said:
Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.Dazed_and_C0nfused said:
https://www.att.org.uk/news-events/news/top-slicing-changespurdyoaten2 said:
Lost on me🤷♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k.Dazed_and_C0nfused said:
Maybe there will be a "silver" lining??purdyoaten2 said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.purdyoaten2 said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0 -
Possibly.Dazed_and_C0nfused said:
Although maybe it's only the slice applicable to 2021:22 that took the op over £100k?purdyoaten2 said:
Well done! The whole thread centred around the fact that top slicing could now be claimed to preserve the personal allowance - should be of interest to the op.Dazed_and_C0nfused said:
https://www.att.org.uk/news-events/news/top-slicing-changespurdyoaten2 said:
Lost on me🤷♂️ The thread was on the subject of claiming top slicing relief to preserve personal allowance on income over £100k.Dazed_and_C0nfused said:
Maybe there will be a "silver" lining??purdyoaten2 said:
There was a huge thread on this very subject about a year or so ago - I was involved in it. I will try to find it.Mothman said:
No it didn't as the chargeable gain was accrued over many years, however it did take his total income to slightly over £100k so there was a small reduction in personal allowance.purdyoaten2 said:
May I ask if the event made your brother a higher rate taxpayer when, otherwise, he wouldn’t have been?Mothman said:Following a chargeable event gain from the surrender of an offshore investment bond, my brother has completed an online self assessment return for 2021/22 to pay the tax due. However HMRC are also asking him for a payments on account for tax yr 2022/23 even though this was a one off event. Is there a way for him to avoid this?
I'm asking as I am likely to have the same issue as I also had a gain on the same policy but submitted a paper return back in April and still haven't received a tax calculation as yet.0
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