.png)
.png)
Top-slicing relief calculation for a chargeable event gain
Our client died in January 2014. Her gross income to the date of death comprised:
- Foreign income: £500
- UK dividends: £13 000
- UK interest: £6 000
- UK pensions: £15 000
She was entitled to the blind person’s allowance of £2 160 and there was also a chargeable event gain of £115 500 that had accumulated over 15 years. The total taxable income before personal allowances was therefore £147 840.
Both our software and HMRC’s shows the top-sliced gain as £7 700 and the total taxable income is then £40 040. No personal allowance has been given so the income is not reduced to the basic rate. Consequently rather than top-slicing relief of £23 100 (ie £115 500 at 20%) the HMRC calculation results in top-slicing relief of less than £1.
Can readers...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
