A return is not required where the capital gain is not taxable for example if it is covered by main residence relief but otherwise interest and penalties will be charged if the deadline is missed. It is likely that these changes will mainly affect those disposing of second homes or rental property. An extra confusion is that the relevant date of disposal for CGT is the date of exchange of contracts whereas the 30 day payment window runs from the date of completion.
Currently CGT is payable by 31 January of the tax year following the year of disposal. Therefore this proposed new deadline is a major reduction in the timescale that applies between selling a residential property and paying the tax. This will cause problems where the calculation of the capital gain is complex. The legislation does however allow certain estimates and assumptions to be made in calculating the payment on account.
Taxpayers who are within the self assessment system will have to report the capital gain on their annual tax return as well as completing the 30 day residential property return.
There is less than a year to go until these new rules come into effect and it is matter of some concern that these changes have not as yet been widely publicised. For more information, speak to an accountant or you may be able to find an adviser , who specialises in taxation, near you. Taxation issues are complex. You should seek professional advice before deciding to act on any information in this article. You can read our Financial Services Guide online for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.
You can also ask us for a hardcopy. All information on this website is subject to change without notice. Personal Insights Manage my money What is capital gains tax? What is capital gains tax and when might I have to pay it? Share this article. In all cases you need to keep records of the 'disposal proceeds' — usually the amount you receive — and sometimes records showing its value on a specific date. You also should keep records of the amount you receive if you otherwise dispose of the asset — this may include, for example, a sum received as compensation for a damaged asset.
Skip to main content. Home Tax Guides Capital gains tax reporting and record-keeping. Capital gains tax reporting and record-keeping. Updated on 12 November Other tax issues. The position for disposals from 6 April can be summarised in the following table: Table A UK tax residence status Asset type Required to report the disposal within 30 or 60 days?
I do not normally complete a tax return. How do I report my gains? Disposals for which a return is not required within 30 or 60 days You have a choice.
We summarise the reporting methods for disposals on or after 6 April in the following table: Table B Required to report the disposal within 30 or 60 days? Post it in good time to meet the deadline. Consider using a signed-for postal service or ask the Post Office for a proof of postage in case HMRC say that they did not receive the form.
In both cases, we recommend completing the necessary steps as soon as possible. I am a basic-rate taxpayer but I do not yet know what my income will be for the year. How do I calculate the CGT due? What records do I need to keep for CGT? You may need to keep a record of some or all of the following: The original cost If you bought the asset after 31 March you need to keep records showing the original cost of the asset — such as receipts for purchase.
The market value at 31 March If you owned the asset on 31 March , you need to work out the market value of the asset at that date and use this in your CGT calculations instead of your actual costs up to that date.
Market value at other dates There are other times when you need to use the market value of the asset on a specific date in your CGT calculations instead of the cost. You deduct these costs in the calculation when working out any capital gain.
There are other costs during your ownership of an asset which can be deducted from the calculation for CGT purposes: Improvement costs If you have spent money improving the value of your asset, you may be able to deduct these costs, as long as the improvement is still reflected in the value of the asset when you dispose of it.
You cannot however include maintenance costs, such as decorating or any repairs. Confirming you own the asset If you spend money proving that you own or have rights over an asset you may be able to deduct this cost. When you dispose of your asset You usually dispose of an asset when you sell it, but you may also give it away, exchange it for another asset, transfer it to someone else or it may have been lost or destroyed. What income is taxable? What tax allowances am I entitled to?
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