A chargeable event...

[eros]

I recently cashed in a savings policy that would mature after 10 years, I cashed it in after six, the company deposited the balance in my account, however they have sent me a chargable events certificate. Will I have to pay extra tax on this?

[bob.fraser@towrylaw.]

The answer depends on a number of factors.
a. Did the policy make a profit> ie did you get back more than you paid in? If so, how much more?
b. What is your taxable income for the tax year in which you encashed the policy.
c. Is the policy with a UK company, or is the company based in the Isle of Man, the Channel Islands, or Dublin?

Bob Fraser
Chartered Financial Planner

[pawncob]

Depending upon your answers to Bob, if you're a higher rate tax payer, there may be tax due, subject to top slicing relief.
Basic rate tax is normally covered by the tax credit.