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Posted Wed, 20 Mar 2024 17:23:43 GMT by Vejovis
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
Posted Mon, 25 Mar 2024 15:31:02 GMT by HMRC Admin 5
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
Posted Mon, 25 Mar 2024 17:37:22 GMT by Vejovis
Even though I am not the only beneficiary in the will?
Posted Wed, 27 Mar 2024 14:02:16 GMT by HMRC Admin 25
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. 

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