chargeable event certificate

tiredconfused77

My dad had a personal wealth plan account with phoenix life

On 17/03/2025 he took  £533 in surrender payment from it

He subsequently passed away on the 24/05/2025

After applying for and being granted probate 

phoenix life found they had made an underpayment 

and sent to the executor account that is in my sisters name on the 19/05/2026

An additional sum of 1900.42 plus 62.98 interest

Now she has received a letter from them

with a chargeable event certificate 

saying we might need to contact the HMRC 

She works part-time and has an income below the tax allowance level 

She doesn't do self assessment her employer automatically deducts tax.

How should we best proceed?

Woodstok2000

The money isn't hers, it's part of the estate and should be dealt with that way. It won't affect her income tax.

poseidon1

As stated by @Woodstok2000 the chargeable event certificate relates to your father's pre death tax position, so any income tax exposure would relate to his estate. Nothing to do with your sister personally.

However if your father's pre death income was well within the 20% income tax bracket, there will be no tax due on his estate.

Incidentally, did your father fully surrender the policy, or is there a remaining policy in force? This is an important question, since there may well be an estate tax charge on any future encashment of a remaining policy.