On 15 June 2020, Adam sold an antique table and this resulted in a chargeable gain of 21,300. Although a payment on account is required in respect of a residential property gain, additional CGT may be payable on 31 January following the tax year. Registered in Ireland with no. The insurance proceeds of 12,000 received by Juliet have been fully applied in restoring the carpet. Once you have completed all the sections there is a short self-assessment quiz to check what you have learned and a CPD certificate for up to 60 minutes can be claimed. On the full gain calculation, the tax treated as paid will be (80,000 - 2,000) x 20% = 15,600. 1. Friends Provident International does not provide advice or sell products directly to customers. For both Bill and Cathy, the payment on account implications of the residential property gain have been ignored because only the total CGT liability is relevant in this example. Top slicing relief revisited the Budget changes explained, Investment bond gains and time spent abroad, HMRC guidance is the only reliable way of calculatingtop slicing relief, The same method can be used for both onshore and offshore bonds, Non-savings income (inc. salary, pension, profits from trade, rent), Savings income (inc. interest and offshore bond gains), Offshore bond gain = 60,000 over 10 years, Personal allowance (PA)of 12,570 (because 'adjusted net income' is below the 100,000 income limit), Starting rate band for savings (SRBS) of zero (because non savings income, in this case the salary, is greater than the sum of the PA and 5,000), Personal savings allowance (PSA) of 500 (because he has income taxable at the higher rate), Offshore bond gain = 30,000 over 6 years, Starting rate band for savings (SRBS) of zero, Personal savings allowance (PSA) of 500, Dividend allowance of 1,000 (2,000 2022/23), Onshore bond gain = 40,000 over 10 years, Personal allowance (PA)of 7,435 (reduced because income exceeds income limit by 10,270), A full personal allowance for calculating the relieved liability in Step 2b (because salary plus the sliced gain totals 74,270 i.e. Then it is simply a case of taxing income in the right order using unused allowances and the tax bands: Broadly, this is the difference between the tax paid on the full gain, less the tax paid on the average gain (or 'slices').