In April 2019 the First-tier Tribunal ruled against HMRC in Marina Silver (TC7103) and in March 2020 HMRC withdrew its appeal and paid the taxpayer’s costs in full. On 11 March 2020 the draft clauses for Finance Bill 2020 were published and these included two changes to the rules for calculating top slicing relief on chargeable event gains. The first change in effect reflects the tribunal’s judgment (but with an important caveat – see ‘Even more bad news’ below) and the second change (sensibly) imposes a specific rule for the ordering of allowances and reliefs in the top-slicing relief calculations. Each of these changes applies to chargeable event gains occurring on or after Budget day 11 March 2020.
First the good news
HMRC has decided to apply the changes in what is now FA 2020 s 37 retrospectively to 6 April 2018. This means that taxpayers...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.