Capital Gains Tax property returns – how to avoid problems reporting to HMRC
As you’re probably aware, the rules affecting Capital Gains Tax property returns changed in April. Before then, you had up to 22 months from the date of sale to calculate, report and pay CGT to the taxman.
The new system is much less relaxed. Now, when you sell a property that’s not your main home, you have to calculate CGT, submit a return and pay the tax within 30 days. If you don’t, you could face both a penalty and interest on the outstanding sum.
Given how quickly HMRC wants you to submit CGT property returns, you’d think the taxman would make it super easy to report and pay.
On the surface, it hasn’t been difficult to report and pay CGT. In theory, all you’ve had to do is log in to the ‘real time’ Capital Gains Tax service and submit your return.
However, until recently, you could only use this service to report one property disposal per year. At a time when many buy-to-let landlords are disposing of residential property, this has meant a major hassle for some. The only way you could handle CGT returns on subsequent properties was to brave HMRC’s phone system on 0300 200 3300. If you were lucky, the ‘call waiting’ queue wouldn’t be too long.
Luckily, HMRC says you can now use the online portal to submit multiple Capital Gains Tax property returns in any one year. That said, it’s worth knowing that the portal still can’t handle any amendments you need to make to your CGT return. To do this, you need to resort to the CGT helpline on the number we’ve already given.
Making Capital Gains Tax property returns less hassle
If you do need to dispose of residential property in the coming months, we strongly recommend you talk to us. Our specialist CGT Residential Property Service is here to make sure you avoid penalties. It can also help you legitimately cut your tax bill.
Instead of facing a whole jumble of complex calculations, our CGT experts will unravel all your data and work out whether you qualify for any exemptions or reliefs. We’ll even make your CGT return on your behalf and deal with HMRC directly, saving you hours of hassle.
So, if you need to sell property in the new future, want to make sure you don’t pay too much CGT and would rather someone else handled the red tape, get in touch today about our CGT Residential Property Service. We’d be delighted to help you.
About Kirsty Demeza
With a portfolio that ranges from startups to companies with a £10 million turnover, Kirsty’s talent for working closely with her clients ensures her services remain in strong demand.
“The most rewarding part of my role is seeing clients succeed,” she says. “When you help a new business and watch it expand into new premises and secure big contracts, it’s a great feeling.” Kirsty never finds two days are the same.
As well as providing accounting services that range from self-assessment tax planning and VAT to audit and accounts, she’s part of THP’s sales team and closely involved in helping our trainees to develop their skills.