New CGT reporting tool
Self-assessment returns aren’t set up for the change in capital gains tax (CGT) rates on the government filing system and will require a manual adjustment for 2024/25 to ensure the correct amount is paid. Why is there a problem and can a new online tool help?
At the Autumn Budget 2024, the government announced that the main rates of CGT would increase from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher rate taxpayers. This change took effect immediately on 30 October, and as this was part way through the tax year it has made reporting disposals for 2024/25 more complicated.
Unfortunately, HMRC has confirmed that the self-assessment tax returns will not factor in the increase in rates and an adjustment may be required. In order to assist with this it has launched a calculator. You may need to use the calculator if you sold or gifted assets after 30 October 2024, and the capital gain exceeded your annual exempt amount of £3,000. In order to use the calculator, you should have other relevant information to hand, such as your total taxable income for the year and details of any capital losses. The calculator will work out the adjustment figure that should be reported on your tax return to ensure the amount of tax due is accurate.
Related Topics
-
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
-
HMRC clarifies summer holiday VAT cut
HMRC has published further guidance on the temporary VAT reduction for certain activities during the school summer holidays. The additional detail helps businesses determine which supplies qualify for the relief and, importantly, which do not. What do you need to know?
-
Electronic VAT return and payment due