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
-
Supreme Court finds LLP asset managers are not influencers
The Supreme Court has ruled that portfolio managers at a hedge fund did not have significant influence over the affairs of a limited liability partnership (LLP) and as such fell squarely within the salaried members rules. How does this decision impact LLPs across the board?
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?