Market leading insight for tax experts
View online issue

Life insurance contracts: top slicing relief

printer Mail

The Association of Taxation Technicians (ATT) has received confirmation from HMRC that the FA 2020 s 37 changes to the calculation of top slicing relief in relation to chargeable event gains on life insurance policies will also be applied in practice for the 2018/19 tax year. The changes allow individuals to retain the benefit of their personal allowance when calculating the amount of available top slicing relief, where the chargeable event gain takes their total income over £100,000.

The Finance Act provisions took effect from 11 March 2020. This led to questions around how people with chargeable event gains prior to that date should calculate their tax. In response, HMRC has confirmed that FA 2020 s 37 will be applied by concession to any gains in both the 2018/19 and 2019/20 tax years. This is an extension of the position in Agent Update 78, which indicated that HMRC would only apply the new provisions to 2019/20 gains.

Issue: 1498
Categories: News
EDITOR'S PICKstar
Top