Chargeable Events and Top Slicing

Hello I recently submitted a Self-Assessment form for 2023-24 on behalf of my father who passed away this June. His income for the year was ~£70000 of which ~£23000 came from state and private pensions. In January 2024 he surrendered two investment bonds which resulted in chargeable events. The income from these events (~£47000) have pushed him into the 40% higher-rate tax band. This has resulted in a tax bill of ~£4000. I am correct in thinking that, as both bonds had been held for 23+ years, top-slicing relief should have been applied and therefore the tax due should be zero? Similarly, a further two investment bonds matured on death which fall in the 2024-25 tax year. Would I be correct in thinking that top-slicing relief does not apply to a person's estate and therefore the liability for the current tax year would be ~£4000 all other things being equal. Many thanks for your help.

Apologies. Would it be possible to move this to the Income Tax forum where I should've posted it originally. Thanks

Hi ,
 

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Hi Bushack. I find myself in a similar situation. Have submitted an Appeal to HMRC in mid September who appear to have overlooked Top Slicing Relief and calculated entire 20+ year policy profit as income in year 23/24 and thus jumping to 40% Higher Rate band. Chased today. Told that HMRC reply to the Appeal may not be before March 2025 ! A 6 month delay suggests a backlog that borders on the desperate if not insurmountable ! In terms of death I would point you in the direction of HMRC IPTM 3240