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In 1998 the taxpayer took out investment bonds with Clerical Medical & General (CMG) and also with Scottish Provident. In February and March 2002 she wished to purchase a property and the bonds were encashed leading to gains of £24 588 and £8 619 respectively.
These chargeable event gains were shown on the 2001/02 tax return and an amount of £7 306 was shown as ‘tax treated as paid’.
It subsequently came to light that the CMG bond was an overseas bond so that no tax credit should have been claimed. HMRC raised an assessment under TMA 1970 s 29 on the basis that the self assessment was insufficient and relief given was excessive.
An appeal that the assessment had not been validly made was lodged in October 2005. The taxpayer died in February 2006.
On behalf of the taxpayer...
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