Taxation logo taxation mission text

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

Readers' forum: Soft option

23 October 2018
Issue: 4669 / Categories: Forum & Feedback

Chargeable events 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; and a chargeable event gain of£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 calculation under ITA 2007 s 23 (s 530(4)). Having reviewed ITA 2007 s 23 I see nothing that suggests any reduction should be...

If you or your firm subscribes to, 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 '' for further assistance.

back to top icon