My client made a total gain of £9000 on an investment bond in 2011/12. Her total income for the year was only £18K so just a basic rate tax payer. Does the £9K gain need to go on the tax return?
Reading the notes from the company it states the gain will only create a tax liability if she's a higher rate tax payer, which kind of makes sense.
Any help would be appreciated!
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John
Full Time Book-keeper, Dad of 3 Teenage Girls, Part-Time Taxi Driver :)
The company must be saying they've deducted basic rate tax and if that is the case then there is no harm putting it on the tax return for this client. My take on this question is that entering it will make it easily referenced should you need to do so years from now. You'll also be able show the client that you've done the calculations to be reflected in your fee :o)
