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Where Taxpayers and Advisers Meet

Investment bond in bare trust - tax return

SuperSpurs106
Posts:24
Joined:Wed Jun 15, 2022 3:25 pm
Investment bond in bare trust - tax return

Postby SuperSpurs106 » Mon Oct 03, 2022 10:47 am

Hi

I have a client who is the beneficiary of a bare trust. She is 16 years old. An onshore investment bond has just been surrendered within the trust and the gain was £8,000. The client has no other taxable income. There will be no tax to pay.

Does she need to complete a tax return?

If not, what is the trigger for completing a tax return..once you have a liability?

TIA

bd6759
Posts:4359
Joined:Sat Feb 01, 2014 3:26 pm

Re: Investment bond in bare trust - tax return

Postby bd6759 » Mon Oct 03, 2022 10:08 pm

The only trigger to complete a return is a notice given by HMRC in pursuance of s8 TMA. Otherwise the obligation is under s7 TMA.


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