(Yet more) Top-slicing changes
Last Friday I received an email from Canada Life. I expect many of you did too. The meat of it was thus:
As a result of a recent tax tribunal, the way in which top slicing relief calculations are completed has changed.
The personal allowance could already be reintroduced back into the calculation, if this was reduced or lost for gains arising from 2018/19. Now, you can also add back in the personal savings allowance, as well as the starting rate band for savings income if this is available for gains arising from 2020/21 onwards.
There's a link to a full article which can be downloaded as a PDF here:
Canada Life Technical Eye - Any way you (Top) Slice it: further changes to calculations.
The PDF states that the changes actually apply from 2021/22, not 2020/21.
What neither the email nor the PDF mention is what recourse bondholders might have who paid too much tax on chargeable events in 2021/22 and 2022/23. Can these now be recalculated and any overpaid tax reclaimed?