Chargeable Event Certificate

Hi, I have a bond that has matured in 2022/2023 Tax year (the bond matured after 27 years). The amount of gain is less than £8000 and the certificate states that I have paid £1523 in Income Tax. I also receive additional income from a property rental which I declare on my online self assessment. Please advise if I need to report the bond gain and in which section. Thank you.

Hi,

Yes, you need to include details of the chargeable event. You will need to tailor your return at section 3 to show this.

Thank you.

Thank you for your reply. Is section 3 ‘other income’?

Hi
At the menu on the online tax return, please select ""3. Tailor your return"".  On page 2 of 3, select 'yes' to ""Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?"".
 

Dear HMRC, My father passed away in Jan 2020. In July 2023 I received £9,780 as part inheritance of my Dad’s estate and this sum came from a Trust Fund based on Isle of Man. The trust fund issued a Chargeable Event certificate direct to you (HMRC) which states that I ‘May’ be liable to income tax on this sum. But there was no Inheritance tax applied to my father’s estate as it did not cross the minimum value threshold. I am self-employed and I am declaring a gross income of £28,656 for last financial year which does NOT include the above sum from the Trust fund. But my understanding is that IF it is just capital redistribution then no tax is applicable unless it exceeds the threshold. So why is a certificate issued stating income tax ‘may’ be appliable? Is it special rule for sums from Trust funds perhaps? Your guidance would be appreciated.

Hi,

The certificate advises that tax may be due as it depends on the level of income that the recipient receives. Basic rate notional tax is automatically applied, non refundable, on the income. If you are a higher rate taxpayer then further tax may be due. Based on the details you have given, no additional tax will be due.

Thank you.