Self assessment and capital gains

[smokey01]

I’m helping my mother complete her online self assessment form. I have got to the section where it says

“ If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? ”

She did dispose of a rental house in August 2022 but we filled out the capital gains form soon after and paid what was owed. So do I say yes or no?

[Adamski]

Yes sounds like a capital gain to me, and there should be a box to say how much tax paid, so you wouldn't need to pay anything further from that capital gain.

[smokey01]

Yes sounds like a capital gain to me, and there should be a box to say how much tax paid, so you wouldn't need to pay anything further from that capital gain.

Thanks

[Dod101]

I’m helping my mother complete her online self assessment form. I have got to the section where it says

“ If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? ”

She did dispose of a rental house in August 2022 but we filled out the capital gains form soon after and paid what was owed. So do I say yes or no?

I would say 'No'. HMRC is asking the question not instructing you. The house sale transaction is done and dusted and so is the tax due it would seem.

Dod

[fisher]

I’m helping my mother complete her online self assessment form. I have got to the section where it says

“ If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? ”

She did dispose of a rental house in August 2022 but we filled out the capital gains form soon after and paid what was owed. So do I say yes or no?

I would say 'No'. HMRC is asking the question not instructing you. The house sale transaction is done and dusted and so is the tax due it would seem.

Dod

That is incorrect.

The "Capital Gains Tax on UK property return" needs to be completed within 30 days of the completion date, but you still have to enter the details on the main Self Assessment form at the end of the tax year. The Property Return is really just an interim return in order that HMRC can take the money earlier. There is a box on the Main form where you put in the tax you already paid as previously explained. I have done this personally back in 2020.

A quick search brings up this:
https://community.hmrc.gov.uk/customerf ... 155d9c7b3d

[scrumpyjack]

The final tax due may well be different to that calculated on the form done soon after the sale, because if she is not a higher rate taxpayer some of the gain will be taxed at 18%, not 28% and you can't know how much until you do the tax return. There might be a tax repayment due.

[fisher]

The final tax due may well be different to that calculated on the form done soon after the sale, because if she is not a higher rate taxpayer some of the gain will be taxed at 18%, not 28% and you can't know how much until you do the tax return. There might be a tax repayment due.

That is correct and it did happen in my case. Annoyingly any CGT tax refund does not happen automatically and it took me over a year to receive it. I had to phone them (and they didn't really know what to do about it back then but promised it would be sorted for me), then a letter (when I hadn't received the refund after nearly a year) and finally many months later again I got the refund.

[Dod101]

I would say 'No'. HMRC is asking the question not instructing you. The house sale transaction is done and dusted and so is the tax due it would seem.

Dod

That is incorrect.

The "Capital Gains Tax on UK property return" needs to be completed within 30 days of the completion date, but you still have to enter the details on the main Self Assessment form at the end of the tax year. The Property Return is really just an interim return in order that HMRC can take the money earlier. There is a box on the Main form where you put in the tax you already paid as previously explained. I have done this personally back in 2020.

A quick search brings up this:
https://community.hmrc.gov.uk/customerf ... 155d9c7b3d

Good. Glad to be corrected.

Dod

[hiriskpaul]

Yes, the gain must be declared. As stated above, gains and losses on other disposals can alter the tax due on the property. Losses on other disposals, such as investments can be used to reduce the taxable gain and clearly you can only work out a CGT liability once all gains and losses for a year have been determined. You might for example dispose of a property in April, pay the CGT in March and then crystallise investment losses throughout the rest of the tax year.

One thing to bear in mind is that you get to choose which gains to set losses against, so losses on shares can be used to offset gains on property before offsetting gains on other shares. Well worth doing due to the higher CGT on property.

[hiriskpaul]

You might for example dispose of a property in May!

[raybarrow]

Hi Folks,

One thing to bear in mind is that you get to choose which gains to set losses against, so losses on shares can be used to offset gains on property before offsetting gains on other shares. Well worth doing due to the higher CGT on property.

I presume the 'offset a loss' on shares only refers to shares outside an ISA. It would be a very generous Gov that allowed us to 'protect' things in an ISA from tax and then claim for any losses within the ISA. I will still be a basic rate tax payer.

We finally sold our inherited house in June. We still need to fill in the CGT reports within the time limit but as I complete a Self Assessment (SA) each year would I have to pay the tax now (I reckon approx £3000) or would/could it be incorporated in the 2023-2024 SA submission as I might take the opportunity to sell some 'poor' shares (outside the ISAs) to offset the CGT.

Cheers,
Ray.

[fisher]

I'm fairly sure you'll have to pay the 3k now (when you submit the property cgt form). There is no allowance for what you might do in future before the end of the tax year, only for what you have already done. The reason hmrc brought in the property cgt form was so they get their hands on the potential cgt payment much earlier.

When you do fill in your end of year SA return it will calculate any overpayment of cgt and you then have to go about claiming the money back which in my experience was not straightforward. Things may have moved on since I did this (3 years ago) and the process may be easier - perhaps!