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Where Taxpayers and Advisers Meet

***DO U HAVE TO INCLUDE ACCOUNT ADJUSTMENTS OR GOOD WILL GESTURES ON SELF ASSESSMENT?

super1
Posts:10
Joined:Fri Mar 10, 2017 10:57 pm
***DO U HAVE TO INCLUDE ACCOUNT ADJUSTMENTS OR GOOD WILL GESTURES ON SELF ASSESSMENT?

Postby super1 » Tue Oct 29, 2019 11:17 am

***DO U HAVE TO INCLUDE ACCOUNT ADJUSTMENTS OR GOOD WILL GESTURES ON SELF ASSESSMENT?
Hello
My bank paid me onto my account a few times money called account adjustment as a result of being nice to me after complaints, the other time other bank send me a cheque of good will  to stay with them.
Now  can someone explain me, if had the same situation or whats the 100% correct way to do, do I have to include acc adjustment and cheques from good will on my self assessment and pay tax  on them?  if yes, then what position an dhow to included?
it does not make any sense to me as it's a sort of recompensation or intensives, not earned interests, but I have found that apparently you need to include SOME account adjustment

would be grateful if someone explains me that if had similar experience   thanks

pawncob
Posts:5099
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: ***DO U HAVE TO INCLUDE ACCOUNT ADJUSTMENTS OR GOOD WILL GESTURES ON SELF ASSESSMENT?

Postby pawncob » Fri Nov 01, 2019 1:57 pm

Probably not taxable,but................
If the compensation cannot be linked to an asset chargeable to CGT/CT, the first £500,000 will be exempt (Paragraph 11 ESC D33). (NB: Prior to 27 January 2014 the full amount was exempt2).

See:https://healys.com/2017/07/28/compensation-may-taxable/
With a pinch of salt take what I say, but don't exceed your RDA


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