Devised and written by Tim Good to assist with accurately calculating the tax on Chargeable Event Gains and Top Slicing Relief.
The Taxpert Topslicer Tool 2018-19 gives a quick, easy and accurate way of checking the HMRC calculation of top slicing relief (TSR) on chargeable event gains.
HMRC use a simplified and outdated method to calculate top slicing relief. In many cases they undercalculate TSR by tens of thousands of pounds.
The Taxpert Topslicer Tool follows the calculation set out in s535 ITTOIA 2005 to calculate the correct amount of TSR and then compares this to the HMRC calculation. The Taxpert Topslicer Tool shows full workings which can be used to support a submission to HMRC.
Who says so?
Tim Good (founder and MD of Absolute Accounting Software Ltd) has spent over thirty years explaining complicated tax issues to tax professionals. His article setting out the theory behind the Topslicer Tool was published in Taxation magazine in September 2017 and HMRC have acknowledged that they need to consider the implications.
What does HMRC say?
HMRC have now responded in detail and as expected they disagree with Tim's analysis. Please click here to read in full.
What have we said to our users?
''I have today (6th February 2018) received a letter from HMRC in which they disagree with my analysis of top slicing relief. This is not unexpected. I am encouraged in that they do not appear to have identified any error in my analysis but simply disagree with my interpretation of Step 2 of s536. I remain convinced that my interpretation is correct, but it will now require a judicial decision as to which is the correct interpretation.
I very much look forward to assisting anyone who is prepared to take such a case to Tribunal''.
HMRC do not yet accept that our calculations are right and theirs are wrong. Pending an Upper Tribunal hearing, we would recommend submitting returns and amendments based on the Taxpert Topslicer Tool calculations to protect the taxpayer’s position.
What about other years?
You can run calculations for the tax years 2013/14 to 2018/19.
Please enter your email address below to receive the link to the free Topslicer checker.
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