Tax return - help please!

I-W · 4 January 2018 at 10:04PM

I have a Chargeable Event Certificate from tax year 2016/2017 due to a part cashing in a With Profits Bond.

I can't work out were on my (online) tax return form to fill in the details from this Certificate. States; Number of years, Amount of tax treated as paid and Amount of gain.

Can anyone please help? (yes I have left this rather late!)

anniecave · 4 January 2018 at 11:16PM

If it's a with profits life insurance bond then:

in first section:

Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?

Your answer would be "Yes" if it's a Life Assurance gain?

There is then a further section on the tax return to complete which mentions years, tax treated as paid, gains etc

I-W · 5 January 2018 at 9:05PM

Thanks for your reply.

Under 'Other UK Income' I ticked 'Life insurance gains' and on the next page at the top in the box 'UK life insurance policy etc. gains on which tax was treated as paid' I entered the 'Amount of gain' from the Chargeable Event Certificate £3504. In the next box 'Number of years the policy has been held or since the last gain (whichever is less)' I entered 15 years again this information was from the Chargeable Event Certificate.
However I was unsure where I should enter the 'Amount of tax treated as paid' £701 from the Chargeable Event Certificate. Where can this be entered?

Also can this amount be claimed back if the overall earnings is under £11000? I went forward to the calculations and the total earnings were just over £8000, however this tax wasn't in the calculations as being refunded.

[Deleted User] · 5 January 2018 at 9:25PM

There should be a box ‘any tax taken off’ box .....
It is not reclaimable.

I-W · 5 January 2018 at 9:42PM

Thanks for your reply, can't find a 'any tax taken off' box. Is that in a different section?

Is it not treated the same as income tax? Hence can't reclaim

anniecave · 6 January 2018 at 9:29PM

Re-looking at the HMRC tax return, there is one box for gains where tax is treated as being paid, and another box for where tax isn't treated as being paid. The amount is 20% tax treatment, so HMRC don't need to know the amount, as 20% of the £3504 will be the tax treated as paid.

I would also assume that tax treated as paid on this can't be reclaimed

[Deleted User] · 6 January 2018 at 9:54PM

anniecave wrote: »

Re-looking at the HMRC tax return, there is one box for gains where tax is treated as being paid, and another box for where tax isn't treated as being paid. The amount is 20% tax treatment, so HMRC don't need to know the amount, as 20% of the £3504 will be the tax treated as paid.

I would also assume that tax treated as paid on this can't be reclaimed

Agreed. If the HMRC site wasn’t down all day I could go into one of my clients returns to confirm the entries!

[Deleted User] · 7 January 2018 at 6:16PM

Under Life Insurance Gains there as a box:

Tax taken off UK Life Insurance policy etc: Gains on voided ISA

There you go!

I-W · 8 January 2018 at 9:33PM

Thanks anniecave and purdyoaten2 for your replies.

Sorry but still a little confused if the £701 should be paid back or not. When as suggested I entered this sum into the box Tax taken off UK Life Insurance policy etc: Gains on voided ISA and then when through to the calculation it showed this being refunded (I could definitely do with the money however I obviously don't want it refunded if should be and don't want to accidentally be accused of tax fraud).

Is this definitely the correct box to enter the Amount of tax treated as paid (£701) from the Chargeable Event Certificate? Concerned as this box refers to ISA and this isn't an ISA.

If it makes a difference this is a Standard Life With Profits Bond

[Deleted User] · 8 January 2018 at 10:23PM

Tax taken off UK Life Insurance policy etc: Gains on voided ISA

The box is for BOTH Life Policies and gains on voided ISAs

There is a difference between credited and refunded. The deemed tax paid will reduce your tax bill but only down to zero (you receive credit for it) - it will not be repaid.

I-W · 8 January 2018 at 11:16PM

Thanks again for your reply purdyoaten2

Something is still going wrong; entering £701 into the 'Tax taken off UK Life Insurance policy etc: Gains on voided ISA' box increased the amount of 'Total tax repayable to you for 2016-17' by £701. So seems to be refunded rather than credited.

Tax return - help please!

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