Chargeable Event

[slippers1967]

Client has received a rather large chargeable event cert....thoughts on what can be done/said to taxman as it seems crazy!

Client's Mother invested £200k in 2009. Investment Bond in sole ownership but had Mother and two sons as Lives Assured.

Client's Mother died in Dec 2010. Grant of Probate issued in one sons name only as second son as mental incapacities.

Son encashed bond in August 2011 but could not encash fully due to a suspended fund within bond.

Cash in value (excluding suspended fund) -£196,953 to be split equally between two sons.

Withdrawals by Mother in years 1 and 2 total £15,833.

Chargeable Event Certificate issued for £181,119 in Son one name only as he was only name on the Grant of Probate........he is a 40% tax payer.

Son now has taxman chasing him for tax on the £181k.

Anyone come across this before and how it was dealt with as it seems absolutely crazy that a 'gain' of such an amount is due?

Cheers