When to report chargeable events
ruthiebusybee
Member
in General
Hi all
Having a momentary mental block.
We've just done a bond surrender for a client whose other income is all PAYE. The whole gain pushes them just over into HRT, but after top slicing relief they are still well within BRT, so no tax to pay. They don't receive any other benefits or allowances that would be affected. Total income is around £59K inc full gain, but only around £49K with top slice (full calc has been done for relief).
Do they still need to make a submission to HMRC, or do nothing as there is no tax to pay?
Ruth Baker
Comments
Chargeable gains reporting comes under self assessment.
Client is only required to report to HMRC if they are aware that they owe additional tax or if they are requested to submit a return by HMRC.
Therefore, if no additional tax liability arises as a result of the bond gain there is no requirement to report to HMRC.
Thank you @richardgough
That was my thinking too, and it seems so logical, why would HMRC want to spend time on something they aren't going to get paid for, but was second guessing myself!
Ruth Baker