Chargeable Event Certificate

My son received monies from a bond held in Isle of Man which was invested after the death of his father. He has received a Chargeable event certificate. I understand that he will need to register for self assessment to declare this to HMRC. Please can someone advise where he fills in this type of income on the forms as it is classed as being held offshore (foreign).

Hi
 

Sarah Matthews ,   This income should be declared as foreign income on the page SA106 at boxes 43-45 (paper  return). If filing online, still foreign income but under other overseas income and gains - gains from life insurance policies  . Thank you.

Hi, I have a similar situation to the above in that I've recently had an offshore bond encashed, and I've now been issued with a Chargeable Event Certificate. I would like to pay the necessary income tax liability for the chargeable event as soon as possible rather than have it hanging over me until the next tax year and hence my question is: Can I submit a tax return specifically for this chargeable event now or if not, when? I've been retired since 2014 and consequently have not submitted a tax return during this period. Any advice would be appreciated, thanks

Hi Keith James
You cannot submit a tax return for the current year until after 6/4/23.
If your chargeable event is under £10,000 there is no need for a tax return.
Thankyou.
Regards.

Hi Thanks for your reply and response to my query. For clarification, will I need to submit a fully completed tax return when the reason is its only for the above chargeable event or can I just complete page SA106 at boxes 43-45 (paper return)? Thanks

Hi,

You need to submit the full return.

The deadline for paper returns was 31 October, so you would be charged a penalty if you file by paper now.

You will need to file online:

File your Self Assessment tax return online

Thank you.

Hi Thanks for your reply. However the timescale contradicts the previous response I had from HMRC Admin 10, 2 months ago, namely: 'You cannot submit a tax return for the current year until after 6/4/23'. My CEC is dated 31/05/2022 so I'm presuming the first response I received after 6/4/23 is correct? Regards

Hi,

The tax year 2022 to 2023 ends on 5 April 2023. You cannot submit a 2022 to 2023 tax return before that date. With your CEG being dated 31 May 2022, this date falls in 2022 to 2023 tax year.

If the gain showing on your certificate is more than £10000, you will need to declare the gain on a Self Assessment Tax Return for 2022 to 2023, but after 6 April 2023.  

If the gain is below £10000.00 and you do not need to complete a tax return for any other reason, then all you need to do is send the certificate to the address below and we can review the gain outside of Self Assessment.

HM Revenue and Customs,
BX9 1AS

Thank you.
 

Hi Thanks for your concise and definitive response that answers all my queries, its much appreciated. However its also disappointing that the person providing the previous part erroneous response didn't offer an apology! Thank you

Hello, I have received two CECs. One for myself The other jointly for myself and my daughter. Neither of us have filed a tax return and do not have a UTR number. Have only received these documents in December 22. The 'Event Dates' at Sept 2022. Does this mean we will each need to register for SA and declare the certificates in 22-23? Also declaration being as advised above? Thank You.

Hi,

A receipt of a chargeable event gain does not mean you necessarily have to register for Self Assessment and complete a 2023 return. Please use the Self Assessment criteria tool to clarify the position.  

Check if you need to send a Self Assessment tax return

You should however report your chargeable event gains to HMRC by sending copies of your certificates to our correspondence address.

 Income Tax: general enquiries

The guidance in Helpsheet HS320 should enable you to calculate the chargeable gains.                                                       

HS320 Gains on UK life insurance policies (2019) 

Thank you.                                    

I also have just had a CEC, and the information on this page has been very helpful. Please can you tell me, when I fill in my 2022/2023 return: 1. what I need to do on the main Self Assessment form (SA100) to show I am attaching a completed SA106 2. on the SA106 do I only need to fill in boxes 43-45? Thank you

Hi,

Page TR2 of SA100 (2023), is soley dedicated to declaring which supplementary pages are being attached to the main tax return. All you would need to do is mark an 'X' next to the supplementary pages you intend to submit with your tax return.

Boxes 43 to 45 of SA106, are for Gains from foreign life insurance policies, capital redemption policies and life annuity contracts, the number of years the policy was held and any foreign tax treated as paid.

Thank you.

Hi - many thanks indeed for that. I will actually fill in my Self Assessment online, so which box do I check to get the equivalent of a SA106 to fill in.Is it the "5. Foreign - Do you need to complete foreign page" or "7. Capital Gains Summary", or something else? Many thanks again

Hi,

It will be under the foreign section. When in there, tick the selection for other overseas income and gains and then in the foreign life insurance.

Thank you.

Hi, My late parents were settlors for a Discretionary Loan Trust invested in a Bond. My father died in March 2021 and my mother died Jan 2022. I surrendered the Bond in Feb 2022. That being the same tax year as my mother died I'm expecting:- (a) 50% of the gain should be assessed on her (b) 50% of the gain should be assessed on the Trust The investment company finally sent one CEC in the name of the Trust which arrived in June 2022. I was expecting two CECs, one for each 50%. I have been battling with them ever since but I realise it can't go on any longer. Mostly I'm not convinced they understand what they are doing and my IFA and a solicitor also think there should have been two CECs. However, the figures on the CEC are okay I believe, it is just that the scenario needs explaining and it doesn't have my mother's name on it. Is that acceptable to HMRC to use the one CEC for both:- (a) my mother's account - apportioning 50% - no tax expected (b) the Trust's account - apportioning 50% - 45% tax expected less the first £1000 of gain Thanks

Is that acceptable to HMRC to use the one CEC for both as described above?

Hi David

Please see guidance here:
Trusts, Settlements and Estates Manual

Thank you. 

Thank you. My question is more about using the one CEC I have for both (a) my mother's account - apportioning 50% - no tax expected AND (b) the Trust's account - apportioning 50% - 45% tax expected less the first £1000 of gain? I can't see that scenario in the manual or the links in it. Or maybe I'm making more of this than I should, perhaps I should just put the one CEC only against my mother's account?

My wife and I are retired and no longer complete tax returns. I understand that if a Chargeable Event Certificate is for less than £10,000 I do not need to register for self-assessment. Does that mean that for a CEC in joint names the figure will be £20,000?