Eric77

Hi, If an non-qualifying investment bond is sold, this triggers a chargeable event. If the owner / beneficiary of the investment bond is a basic rate tax payer (both with and without the chargeable event), there is no tax to pay because the investment bond has already been paying an effective 20% throughout. My question is: Does the sale of the investment bond / chargeable event .... change the adjusted net income (even though there is no tax to pay)? Where is this explained? Thanks.

Hi, Since seeing your reply, I see that my question had already been answered in this thread: https://community.hmrc.gov.uk/customerforums/pt/f4f8c397-259c-ef11-95f6-000d3a8737b3. Confusingly, that thread said the opposite, i.e. it said specifically that eligibility is based on Adjusted Net Income, so pension contributions will affect eligibility (from "HMRC Admin 17 Response" and "HMRC Admin 34 Response ". Who is right please?

When deciding eligibility for 'Starting Rate for Savings' the HMRC 'Tax on savings interest' website explains that it is based on the amount of your 'other income (for example your wages or pension).' Is there a precise definition of 'other income' please? For example, is it the: - 'adjusted net income' https://www.gov.uk/guidance/adjusted-net-income - the taxable income minus savings and dividend income or - something else? Can, for example, someone shift themselves so that they qualify for starting rate for savings, simply by making enough personal pension contributions to take their 'other income' below the £12,570 / £17,570? Where on the HMRC website is this explained? Many thanks.