Tax Returns and Assurance Vies

[Loirette]

I know it’s early, but I want to be sure that I have everything I need before I complete this years tax return.  I have an assurance vie which was started in 2009 and elected to receive any encashment gross of tax and pay the tax myself.  Last year I withdrew some money from the funds and I understand that I will only need to show the “gained element”, but I am not sure where on the tax form this needs to be shown.  Can anyone help please?

Loirette

[suein56]

[quote user="Loirette"]

Last year I withdrew some money from the funds and I understand that I will only need to show the “gained element”, but I am not sure where on the tax form this needs to be shown.  Can anyone help please?[/quote]

AFAIAA you will be sent a communication by your AV company which will detail exactly what you should put where on your tax form. You should receive this in plenty of time to fill in the return in May.

Sue

[parsnips]

Hi,

   The insurance should send, or have sent you, an "avenant" setting out your withdrawal and the gain element. They may have shown in it where to put it on your 2042 , if not it goes in 2TR and also 2CG if it is a monosupport in euros, or 2BH for a multisupport. After 8 years it goes in 2CH . You may find that the declaration comes with the amounts pre-printed (if this is not your first declaration.

[Loirette]

Thanks for your replies.  I did expect to receive such a form, but when I asked about it I was told that because I had opted to have the withdrawal paid gross, I had also elected to take full responsibility for paying any tax charge that may arise!  I still expected them to provide the necesary info for me to declare, but apparently that is not the case.  I will speak to them again about this.  In the meantime, I am not sure what monsupport and multisupport means, could you please explain Parsnips?  Also, my investments are in GBP not euros, not sure if that makes any difference?

[parsnips]

[quote user="Loirette"]Thanks for your replies.  I did expect to receive such a form, but when I asked about it I was told that because I had opted to have the withdrawal paid gross, I had also elected to take full responsibility for paying any tax charge that may arise!  I still expected them to provide the necesary info for me to declare, but apparently that is not the case.  I will speak to them again about this.  In the meantime, I am not sure what monsupport and multisupport means, could you please explain Parsnips?  Also, my investments are in GBP not euros, not sure if that makes any difference?[/quote]

Hi,

       Monosupports are plans which are invested in a guaranteed € fund only, and have CSG taken at source. Multisupports or "unités du compte" plans allow investment in a range of equity and other funds and usually include a € fund. I suspect your plan is based in Luxemburg and that you may have purchased it via a french-based IFA; if that is so chase the IFA for the necessary figures. The plan providers must give you an annual account of the year-end state of your fund, and also details of the amount you withdrew. This may not come till very shortly before the declaration date--so hang on as long as possible (or declare online) . The fact that the plan is in £ sterling means you have to convert all sums into € (at the rate applicable on the day of the particular transaction). You can get the figures on http:// www.xe.com, in the historic charts.If you have only the bare figures there is a formula to work out the declarable amount, which is:

(Amount of partial withdrawal)  minus-{total premiums paid in at withdrawal date x (amount of partial withdrawal-divided by-total value of plan at withdrawal date)} = amount to declare.

 I'm afraid it's a bit complicated (hopefully you won't need it) but if you get an answer that looks very wrong -re-read carefully and do it again.

[Loirette]

Parsnips, many thanks for the info.  I'll contact my IFA and ask them again to provide the relevant info.