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Where Taxpayers and Advisers Meet

Top slicing

Alojzy
Posts:1
Joined:Sat Sep 04, 2021 11:55 pm
Top slicing

Postby Alojzy » Sun Sep 05, 2021 12:07 am

Help. Very confused. My father died in March. He held a prudential with profits bond UK onshore for 23 years

Bond funds have been released to estate account for inheritance.

A chargeable event certificate was issued on death. Qualifying years 23 since inception of bond.
He was basic rate tax payer.

Is it my father liable for any tax due ? If so this would be zero as top slicing relief would apply

Or is the estate liable in which case I don’t think top slicing would apply.
Someone suggested that the rules around top slicing after death changed in 2020 and I can’t get my head around it.

Advice appreciated.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Top slicing

Postby maths » Wed Sep 08, 2021 2:34 pm

I assume father was the beneficial owner and life assured and the bond matured on his death. The bond I also assume was not held in trust.

Death occurred in tax year 20/21.

The income tax liability is that of the father ie the gain is treated as the income of the father for the tax year of death ie 20/21.


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