Chargeable gain on bond

[Lemons1571]

I mistakenly cashed in a bond, basically to draw a line and start again after a very lengthy probate period. Cashing in has created a chargeable gain of nearly £14k and, being a higher rate tax payer (for the first time in 24/25), I think I am liable for the other 20% - £2,700 or so.

Is there anything I can do to mitigate this? I am thinking of paying £20k into somewhere like PensionBee to get my other income to around £45k, thereby making me a basic rate tax payer. Or will this not work? Should I suck it up and just bung the bond money into an ISA over a few years?

I already do a self assessment tax return. But can’t do this in advance to see what the numbers look like. And it’s not enough money overall to make it worth paying an accountant to do the sums.

Am so annoyed with myself. If I’d cashed it last winter when I was a basic rate tax payer, all would be fine.

Top slicing relief may be available. Also the bond will fall into the tax year of the bond’s next anniversary date after cashing in I.e. if you took the bond out after 5th April the anniversary date will be in the next tax year.
Otherwise reducing your income through pension contributions might work but you will need to know what you are doing.

On the chargeable gain certificate it says this relates to the year 2024-25.

i would have got top slicing relief last tax year, as this would’ve pushed me from basic to higher. Butt this year I’m already a higher rate payer (only just though). Gutted. Idiot!.

You should be able to circumvent this. You need tax advice.

I don’t know how to find tax advice that doesn’t cost as much as the potential tax charge. Accountants seem to want thousands to review financial position and advise. Any ideas?

I wonder if theee are websites that
mimic the HMRC tax return. So that I could put the numbers in and see what the tax looks like?