garyw5988 williams

Basic rate tax payer since retiring, but with inflation-driven pension increases and frozen tax bands I expect to breach 40% tax this year. So recent receipt of NHS pension Goodwin judgement arrears and interest circa £4800 back to 2017/18 whilst welcome brings dismay in that if treated as incurred in this tax year would incur extra approx £800 tax (on top of that for 20% band). “HMRC Admin 18” helpfully posted for a similar issue (pay in arrears): “From the perspective of an employee who receives arrears of pay, the arrears are treated as received (and therefore taxable) in the year in which the individual became entitled to the payment, rather than when the payment was actually made. Please refer to the guidance at EIM42290.”  I became entitled to my Goodwin payment in tax years 2017/18 to 2023/24 inclusive and can show that (apart from 2023/24 portion) the additional sums would have been well inside my basic rate limit each tax year. But how do I include that in my 2023/24 tax return please, or is there some other form to use? Many thanks.

Thank you HMRC Admin 19. I did what you said, followed the IHT link, posted my question in the Chat but was disappointed 30 minutes later with the response "Agent "HMRC" exits chat". My question is quite simple and must be a fundamental basis for HMRC business: Can charity donations be made from capital such as savings and not from income? It would be very much appreciated if you could direct this to an HMRC person who can answer my query.

Please may I ask if charity donations can be made from capital such as savings and not from income? Context is IHT403 and regular gifts out of surplus income. Reason for asking is that I make large charity donations relative to my regular gifts out of surplus income and so if charity donations can be from capital and not income this would enable me to increase my IHT403 surplus income and thereby gifts. I make regular gifts out of surplus income to my two adult sons. I have taken care to read HMRC IHT400 / 403 notes also IHT manual sections 14241 - 55. I maintain an IHT403 page 8 table each year and keep bank records. I note that IHT403 page 8 “Gifts made as part of normal expenditure out of income”, box 21 “expenditure" does not list “charity donations”.