The ATT has published a note from HMRC on the interaction between the UK property reporting service and self-assessment. HMRC wanted to highlight the case where an individual has been charged (and paid) more CGT following the in-year report of their disposal via the service than is due under self-assessment and is now seeking a refund.
Following a report under the UK property reporting service, a UK resident individual may find that they have overpaid their CGT if, for example, their income is lower than expected, or because a capital loss on an asset other than UK residential property was realised after the completion of the residential property disposal. In the current system, the HMRC computation of tax due under self-assessment will not show the amount of the refund or set it off against the tax due.
HMRC’s update explains that a taxpayer may request a manual adjustment by telephoning HMRC (where they are unable to amend the return via the UK property reporting service). This is an interim solution for 2020/21 tax returns ‘while HMRC works to see if a better solution can be found’.
The ATT has published a note from HMRC on the interaction between the UK property reporting service and self-assessment. HMRC wanted to highlight the case where an individual has been charged (and paid) more CGT following the in-year report of their disposal via the service than is due under self-assessment and is now seeking a refund.
Following a report under the UK property reporting service, a UK resident individual may find that they have overpaid their CGT if, for example, their income is lower than expected, or because a capital loss on an asset other than UK residential property was realised after the completion of the residential property disposal. In the current system, the HMRC computation of tax due under self-assessment will not show the amount of the refund or set it off against the tax due.
HMRC’s update explains that a taxpayer may request a manual adjustment by telephoning HMRC (where they are unable to amend the return via the UK property reporting service). This is an interim solution for 2020/21 tax returns ‘while HMRC works to see if a better solution can be found’.
