Onshore bond chargeable events and tax return requirements
Wildparaplanner
Member
Hi all,
I don't know what other peoples knowledge is like of filing tax returns. We have a client looking to take a £65,000 withdrawal from an onshore bond. They have been taking the maximum 5% deferred withdrawals since inception in 2018. They are a nil rate tax payer.
If we were to take the full £65,000 as a partial withdrawal across all segments (i.e. a chargeable event gain of £65,000), would the client have to submit a tax return for this even though the top slicing relief will essentially mean no tax is to pay?
My understanding is that if it was say a £30,000 gain, then it's not reportable on a tax return. However, as there is top slicing relief involved, does it become reportable?
Many thanks
Wild
Comments
Savings income in excess of £10,000 needs reported and triggers self assessment requirements.
Bond gains are savings income.
Whether or not tax is payable is irrelevant.
https://www.gov.uk/check-if-you-need-tax-return