Michael

Hi all. My wife was gifted 5% of a family business a number of years back (2008) These shares entitled her to an annual dividend which we always paid our tax through self-assessment. Her parents are now selling the business and for some reason they have asked for her shares back for free (!) so as they can proceed with the sale. Does that leave us exposed to Capital Gains Tax? We never paid anything for the shares and I am just concerned we may be liable to tax and we are asked to give something away for free. We don't have visibility of the sale figures and the exact deal so don't even know how to value the shares and considering this is a family business, we have very little knowledge of the ins and outs as we were always at arms length. Any advice? Thanks

Thank you @HMRC Admin 25 That was the exact answer i was hoping for. Perhaps you could amend your HICBC guidance to point people at the relevant box in theor self assessment or their P60 as the two figures match in my case as i only have one source of income. As for the Self Assessment, i suspect i dont need to do one but i dont mind submitting one as in the future i may need the flexibility. Every year there is a small charge to pay - less than £10 - which i can only assume it is a rounding error somewhere! Thanks a lot for your response - Wish i had re-started the child benefit earlier now as it looks like i may have been able to claim at least half of it in the previous tax year thanks to a Vehicle (EV) Salary Sacrifice scheme that reduced my reported figures significantly - by almost £10,000 in the box 1 of the SA102 for the Tax year to April 2024 Many thanks Michael

Hi, hopefully a straightforward question I only have one source of income but for some reason HMRC has been asking me to do a self assessment for many years now. With new changes I believe I can claim some of the child benefit but not sure what the correct figure is. On my SA102 form, is it box 1 we use to work out the earnings for the year as far as this charge is concerned or done use the figure in box 1 and take out box 2 to work it out? Does the figure in box 1 includes any deductions for my Defined Contribution employer pension usually taken before tax is applied? I have already increased my pension contributions to account for this and I reckon this year the figure in box 1 will drop to the mid £60K mark. I could increase the pension contributions even more I suppose. Thanks