Chargeable event from death

Hello My dad died in January this year. I was the only executor of the will, which said to split any monies between surviving children, or their children if they had already passed. There was a policy from the Prudential for £23,391. So I divided this into 3, so £7797 each, then one of those 3rds divided again into 4 because my sister died 12 years ago and her share went to her 4 children. Today I got a chargeable event certificate saying Surrender value at DoD £23391 Premiums paid £7662 Chargeable gain £15729 Notional tax £3145 I tried phoning HMRC, who told me to phone the Pru, the Pru said phone HMRC. I phoned back and the advice was clear as mud, as is the advice online (to me anyway). My question is, as we received less than £10k each, do we need to do a Self assessment? Or because it all came to me and then I split it out (the letter is just in my name) do I have to just do a Self assessment, and pay anything myself? Also, will it affect my tax code. Sorry it's long and rambling, it's making me extremely stressed. Tia

Hi Vejovis

As you are named as the only beneficiary on the event, it is classed as your income and as over £10,000 a tax return is required.
Guidance is available at HS320 Gains on UK life insurance policies (2023)

Thank you

Even though I am not the only beneficiary in the will?

Hi Vejovis,
The person or persons named on the policy are the ones who would declare the chargeable event gain, even if more than one person is a beneficiary.
Thank you. 
 

I am a trustee of an assurance life policy held in Trust. Both the Settler and assured persons have died and there is a Chargeable Event associated to the policy which names 4 beneficiaries. I understand the Trust/Trustees will receive the Certificate. With the distribution of the benefit do I also inform each beneficiary of their tax liability with a copy of the Certificate?

Hi,
Please refer to HS320 Gains on UK life insurance policies (2024)
Thank you.

Hello, I apologise, the previous 2 posts by myself were accidental. The website keeps posting my entry before I am finished. I am writing from a firm of solicitors who are representatives for our client Mr A who has passed away. Mr A had a discretionary trust which was for the benefit of his son Mr B. However, Mr B rarely needed to use this money so the sum of money built up, the money stood in an investment, Now, Mr B has passed away. We have been advised by the financial advisors who managed the investment, that CGT won't be payable on the investment now Mr B has passed away but that income tax on the chargeable gain will be payable. Therefore, we need to submit an income tax SA100 for Mr B. However, when we have called HMRC to ask for a UTR or a possible reference number we could use, we were told that we are not authorised for this information as we are not personal representatives of Mr B. As above, we are personal rep for Mr A and now we have come across this tax which needs to be paid, we are prepared to arrange this form. We are not aware of Mr B having any family or appropriate people to be his administrator to pass this onto. We understand the remaining beneficiaries of the Trust that will receive the investment once cashed in are a group of charities. Please can you let us know what the process is to proceed in order to have the income tax declared. Thanks, 

Name removed admin .

Hi,
Please refer to:
Report and pay your Capital Gains Tax
Thank you.

Hello, My mother passed away in March 2024 and I am one of the executors of her will. At that time she was the policyholder for 3 life assurance bonds and the sole named beneficiary ( they were originally joint life policies with her husband who died in 2015) I have received Chargeable Event Certificates for all 3 policies but I am unsure who should declare these and pay any income tax due. I assume they form part of her estate and will be distributed in accordance with her will. The full value of these policies has therefore been included in her IHT return. However, who, if anyone, is liable to pay any additional income tax on the Chargeable event? As she was the named beneficiary do we need to declare these as part of her income for the year in which she died (although the payout only occurred in this tax year), or is it the responsibility of the beneficiaries of her will to declare these as part of their income?

Hi SteveP,
They will form part of the estate and any extra tax would be payable by the estate.
As they will be in your mothers name, they need to be submitted to HMRC for any charge to be raised
Thank you.