Savings Policy?
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Some help please. Going to see a new client at the end of the week - an old boy who has been sent a tax return for the first time.
In trying to establish why HMRC would send him one I have found out that he cashed in an "insurance policy" for £11K - I assume that actually it was probably not an insurance policy but some form of savings policy - could I be wrong? :oops:
Assuming that it is some sort of savings policy, then this would trigger a chargeable event - Am I right? Carrying on that assumption, presumably I can deduct the monthly premiums???
That being the case, there is no CGT payable nor even a large enough amount to complete CGT pages, and I am still at a loss as to why the Revenue have sent him a tax return, as the proceeds of the policy were relatively small.
Please can someone tell me if a) my assumptions above are correct, and b) any other ideas why he might have been sent a return as he is 75.
Any thoughts/help much appreciated - it appears that his savings accounts are paid net (pennies only) and so is his state pension and company pension. He is also nowhere near higher rate tax.
Claudia
In trying to establish why HMRC would send him one I have found out that he cashed in an "insurance policy" for £11K - I assume that actually it was probably not an insurance policy but some form of savings policy - could I be wrong? :oops:
Assuming that it is some sort of savings policy, then this would trigger a chargeable event - Am I right? Carrying on that assumption, presumably I can deduct the monthly premiums???
That being the case, there is no CGT payable nor even a large enough amount to complete CGT pages, and I am still at a loss as to why the Revenue have sent him a tax return, as the proceeds of the policy were relatively small.
Please can someone tell me if a) my assumptions above are correct, and b) any other ideas why he might have been sent a return as he is 75.
Any thoughts/help much appreciated - it appears that his savings accounts are paid net (pennies only) and so is his state pension and company pension. He is also nowhere near higher rate tax.
Claudia
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Comments
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Re:Savings Policy?
I think you're assumptions sound spot on - if he's just paying basic rate tax then no additional tax should be payable on the chargeble event and my guess is that HMRC have :shock: sent him the return unnecessarily :shock:
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Re:Savings Policy?
Thanks Jodie - comforting to have someone agree with me
Claudia
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Re:Savings Policy?
Was going to reply to this thread just yet but as you asked in another thread...
When you see the client at the end of the week... you'll no doubt find that there are some other matters that he neglected to tell you as he thought it wasn't relevant.
For the revenue to send him a tax return they must have wind of something. :? If not phone the Revenue and find out why?
Regards
Dean0