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Posted Sat, 15 Apr 2023 20:04:21 GMT by Michelle Atkin
My parents are both in their 80s and have just fully surrendered a life policy. They have received a chargeable events certificate and are worried about how much tax they need to pay on the surrender. My mother is a non tax payer and just gets state pension and my father is a basic rate tax payer. Neither of them are computer literate and I am trying to help them. As HMRC have been sent the chargeable events certificate by the life insurance company (the policy was cashed in November 2022) Do they just have to wait for HMRC to contact them and how can they find out how much they need to pay - any help and advice would be appreciated - Thanks
Posted Thu, 20 Apr 2023 12:39:10 GMT by HMRC Admin 20
Hi Michelle Atkin,

A chargeable event is a gain that arises on a life insurance policy, when the amount paid out by the policy, exceeds the amount paid in.  The gains are classified as savings, so fall under income tax and not capital gains tax.  
The chargeable Event Certificate (CEC) amongst other things, shows the number of years the policy was taken out, whether tax is treated as paid on the gain and if so, how much.
 Please ask your parents to either put the details of the certificate on their Self Assessment return, if we send them one.  
Write to
H M Revenue and Customs,
BX9 1AS,
or telephoning HMRC with the details.
The telephone helpline numbers are: Number: 0300 200 3310, Text Relay: 18001 0300 200 3310, Overseas: +44 161 931 9070 (Open Monday to Friday 8am to 6pm.  Closed on weekends and bank holidays).

Thank you.

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