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Will I be penalised for a PS to my last tax return?

Q I prepare my own tax returns and the form for 2003 was sent to the Revenue in July. I have just realised that I did not include interest received on a building society account opened in 2002. If I tell the Revenue about this will I be charged interest or any sort of penalty?

A The strict position is that you have until January 31, 2005, to notify the Revenue of the error in your return, although you will be charged interest if the correct tax is not paid by January 31, 2004. I suggest you write to the Revenue straight away to put things right.

Q I am worried about the amount of child tax credit I am receiving. It may be too much because my circumstances have changed. If I am right, when will I have to repay any overpayment?

A After April 5, 2004, the Tax Credits Office will ask you to confirm your circumstances and income for the year to that date. If you have been overpaid the amount is likely to be collected from your credit award for the year to April 5, 2005.

Q I have just cashed in a With Profits Bond and received less than my original investment, even though I did not make any withdrawals during the three years I held it. Can I get any tax relief on this loss?

A No. Losses on the full surrender of investment bonds are only eligible for tax relief if partial withdrawals have been made above the 5% 'annual allowance'. Relief is restricted to the lower of the actual loss and the amount taxable on partial withdrawals.

Advice comes from Alex Embiricos, principal of Alex Embiricos and Co, chartered accountants and taxation consultants of Cardiff. We regret that no personal replies can be given and advice is offered without legal responsibility
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Business
Publication:Western Mail (Cardiff, Wales)
Date:Dec 11, 2003
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