WebJul 29, 2024 · Bob has a salary of £50,000 and a £50,000 onshore bond gain over 10 years. Under the 6 step method no top slicing relief would be due, “If all of the gain falls in the basic rate band, or the higher band, then no top slicing relief is due and steps two to six are not needed.” Under the new 5 step process it’s a bit different WebJul 25, 2024 · The key to a top slicing calculation is to divide the gain by the number of complete years. HMRC use ‘N’ to denote the number of complete years. ‘N’ which can never be less than one is calculated as follows: Note that an ‘excess event’ arises on a part surrender or a part assignment.
Chargeable event gains – income tax calculator Quilter
Webassignments, the ‘top-slice’ is worked out using the number of complete years since the policy started. However, if the chargeable event is a second or subsequent part surrender, the gain is top-sliced by dividing it only by the number of full years since the previous chargeable event. Offshore bond WebJul 26, 2024 · Example of top slicing relief for an onshore bond with additional rate tax due Bridgit has a taxable salary in tax year 2024-2024 of £32,700 and a chargeable event gain of £160,000 on the surrender of an onshore bond on 1 June 2024 that she had held for just over eight years. brushing facile
Investment bond top slicing: the essentials - citywire.com
WebJul 25, 2024 · The key to a top slicing calculation is to divide the gain by the number of complete years. HMRC use ‘N’ to denote the number of complete years. ‘N’ which can … WebOct 9, 2024 · > Top slicing can reduce your tax liability if none of your taxable income, before the profit slice, would have been subject to tax above the basic rate, or where the excess gain takes your income into the Additional rate tax bracket. Before doing something... do nothing « 1 2 » This discussion has been closed. Latest MSE News and Guides WebAug 21, 2024 · Offshore Bonds are often put forward as the ultimate investment for tax efficiency. But whilst they are tax efficient, there are a number of other commercial issues … examples of caring for others