Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Top slicing relief on life assurance gains

25 August 2020 / Tim Good
Issue: 4758 / Categories: Comment & Analysis
Here we go again

 

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...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon