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02 October 2018
Soft option; Home from home; Loan arrangements; Horse trading
Soft option
Chargeable event gains and the notional tax credit.
I have a client whose income for 2017-18 can be summarised as follows.
- Earned income (pension) £3 811
- Rental income £10 352
- UK dividends £310
- UK interest £30
- Chargeable event gain £1 140
My tax software calculates the tax due as £532.60 and gives no credit for the £228 notional tax on the chargeable event gain. I have queried this with the software supplier and it notes that since the gain falls within the 0% starting rate the notional tax credit is not available.
However ITTO1A 2005 s 530 mentions that the available notional tax credit is not repayable (s 530(2)) and is reduced by (s 530(3)) deductions under step 2 or 3 of the...
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