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
-
Time off for fertility treatment?
A survey by Fertility Matters at Work has revealed that more than one-third of employees undergoing fertility treatment have resigned or are considering resigning because of the physical and emotional toll. Is there a right to time off for fertility treatment?
-
HMRC’s new compliance check service
HMRC has published a collection of videos and notes to help if you’re picked for a compliance check. Is HMRC’s new service worth a look or is it just official propaganda?
-
MONTHLY FOCUS: THE KEY TAX CONSIDERATIONS FOR A NEW BUSINESS
In this monthly focus, we take a look at the tax matters that affect new unincorporated businesses in the first year, including dealing with HMRC, the choice of accounting basis, deductible expenses, and dealing with losses.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.