Absolutes Taxpert Topslicer Tool is set to revolutionise the way you calculate tax on Chargeable Event Gains (CEGs). The Taxpert TopSlicer Tool could help your clients save thousands of pounds in tax from future CEG liabilities and, more important, could help them reclaim overpaid CEG taxes from the past.
The recent judgment in the First-Tier Tribunal case brought by Marina Silver has paved the way for others to launch similar claims against HMRC.
We believe this is the only top slicer calculator in the UK which accurately works out CEG liabilities and Top Slicing Relief (TSR) in accordance with the method laid down by the First-Tier Tribunal in theSilvercase.
Click here to read Taxation Magazines article written by Tim Good about theSilverCase.
We can provide the Taxpert Topslicer Tool for individual tax years from 2010/11 to 2019/20.
Please note: This ground-breaking piece of software is only being made available to eligible professional services firms with relevant individual clients. To check your eligibility, please.
The Taxpert Topslicer Tool 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HMRC use a simplified and outdated method to calculate top slicing relief.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 under calculate TSR by tens of thousands of pounds.
The Taxpert Topslicer Tool performs the calculations set out in s535 ITTOIA 2005 to calculate the correct amount of TSR and then compares the result to the HMRC calculation. The Taxpert Topslicer Tool shows full workings which can be used to support a submission to HMRC.
1) Make historical checks on your clients tax liabilities to see if there is a difference between what they paid and what they should have paid. The software highlights, where appropriate, how much they may have overpaid.
2) Use the Topslicer Tool as a tax planning aid to reduce future CEG tax liabilities.
Tim Good (founder and MD of Absolute Accounting Software Ltd) has spent over thirty years explaining complicated tax issues to tax professionals. His first article setting out the theory behind the Topslicer Tool was published in Taxation magazine in September 2017. At that time HMRC acknowledged that they needed to consider the implications of Tims analysis.
In April 2019, Tims thoughts on this matter were 100% confirmed in theSilverCase which saw Mrs Marina Silver successfully argue that HMRC had overcharged her to the tune of nearly 20,000. Click here to read the full judgment of the case.
Based on Tims original article in Taxation Magazine,HMRC responded in detail and as expected they disagreed withTims analysis. Please clickhereto read HMRCs response in full.
However, we were encouraged in that they did not appear to have identified any error in Tims analysis but simply disagreed with his interpretation of Step 2 of s536. The First-tier Tribunal agreed entirely with Tims interpretation, but HMRC have now appealed that decision to the Upper Tribunal.
TheSilverCase has highlighted the importance for accountants and relevant professional services firms of double checking their tax calculations for any client (including deceased estates) that have a CEG, to see if they have a possible claim. CEGs arise on investment bonds or single premium non-qualifying life policies, which have been widely sold by the investment industry over recent decades.
This case could have major implications for your clients, who could now reclaim hundreds if not thousands of pounds in overpaid or over-calculated tax.
HMRC have appealed against theSilverdecision, with the appeal hearing likely to be sometime in 2020.
HMRC donot 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 taxpayers position.
Single user licence – 299 + VAT for one tax year (unlimited clients or scenarios)
Subsequent tax year data – 149 + VAT per additional tax year
So if you wanted the Topslicer Tool for say 2018-19 and 2019-20, a single user licence for both years would cost 448 + VAT and allow you to enter and save details for as many examples as you like.
Multi-user licences please contact us for more details.
We will only provide the TopSlicer Tool to accountants, IFAs and other relevant professional services firms who have clients whose circumstances will trigger TSR.
If you would like to see if you meet the criteria pleaseand we will contact you to discuss your eligibility.
Bicester Innovation Centre, Telford Road, Bicester, OX26 4LD