• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

With profits inherited estate

H

Helloall

Very Active Member
When a surrender profit occurs, does the profit go to the inherited estate or go to the asset shares of the other policies?
 
Helloall said:
When a surrender profit occurs, does the profit go to the inherited estate or go to the asset shares of the other policies?
Click to expand...
It depends what the company practice is, it could go to either. The surrendering profit is a possible component of the asset share calculation.

Thanks
Em
 
Another question on the same topic, how is it fair to use the inherited state towards the payment of taxes incurred by fund on distribution to shareholders? What kind of taxes are incurred?
 
Chirag Garg said:
Another question on the same topic, how is it fair to use the inherited state towards the payment of taxes incurred by fund on distribution to shareholders? What kind of taxes are incurred?
Click to expand...
Tutors feel free to correct me but my understanding is that it is generally not seen as an ideal situation. In the UK at least you're not allowed to pay tax on SHTs out of the fund unless it was established practice - i.e. in the PPFM etc - at the time the rule came in. (COBS 20.2.20). I'm not sure why they didn't just disallow it altogether but I have seen arguments against this. My view is that just because it is established practice it doesn't mean it is appropriate practice.
 
Yes - that sounds correct. This is about paying tax on the money that is distributed to shareholders out of the with-profits fund (the shareholder transfers). It basically boiled down to whether the shareholders being eligible to receive '1/9 cost of bonus' (for the 90:10 funds where this has typically been an issue) was intended to mean before or after the deduction of (shareholder) tax.
 
You must log in or register to reply here.
Back
Top