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Capital Gains Tax Report and pay within 30 days

CGT on sale of UK Property now needs reporting and paying within 30 days. Any more information?

Didn't find your answer?

With the property market reopening I'm trying to get my head round the practical aspects of this new requirement. The link says guidance will be updated but I haven't found an update yet.

Can I ask how other tax advisors are planning on managing this please?

Does the report need to be submitted direct via the Government Gateway or has tax software been adapted for the purpose? I can't see a new link in our HMRC agent portal. I presume tax agents can deal with it?

Thanks for any feedback.

Replies (23)

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RLI
By lionofludesch
19th May 2020 10:59

Me neither.

Perhaps it's been sidelined.

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By Paul D Utherone
19th May 2020 11:19

It's here - https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

See also here - https://www.icaew.com/insights/tax-news/2020/apr-2020/30-day-reporting-o...

Your 64-8 isn't good for this. The client has to start the process online, then give you a code so that you can assist as agent.

Once you have jumped through those hoops the 'Service' should be available to you for the client.

Thanks (3)
Replying to Paul D Utherone:
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By newmoon
19th May 2020 11:37

Thank you, those links are really helpful.
Having read through the HMRC guidance I can see on our Agent Services Account (we set this up to set up clients for MTD from memory and is a different login from our general HMRC portal) there is a 'Report and pay a client’s Capital Gains Tax on UK property' section but to proceed it says 'When your client created their account they got an email with this number. It is 15 characters. For example, XYCGTP123456789' and this needs entering. Presumably this is their Government Gateway access.

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Replying to newmoon:
By Paul D Utherone
19th May 2020 15:15

newmoon wrote:

Thank you, those links are really helpful.
Having read through the HMRC guidance I can see on our Agent Services Account (we set this up to set up clients for MTD from memory and is a different login from our general HMRC portal) there is a 'Report and pay a client’s Capital Gains Tax on UK property' section but to proceed it says 'When your client created their account they got an email with this number. It is 15 characters. For example, XYCGTP123456789' and this needs entering. Presumably this is their Government Gateway access.

No it is not their normal GG login. It will be a unique code generated when they initiate the CGT 30 day reporting process from their end.

They start the process here - https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start/repor...

The client creates an online Capital Gains Tax on UK property account - separate to the PTA if they have one. From there they get a code that they give to you

On the HMRC/Agent Forum in answer to the question:
"How do I register as an agent for the online CGT reporting tool for residential property gains? It is not listed on my agent account as an option under "enrol for services". Has it been released to agents yet?"

They say:
"...agents have to enrol through agent services to access the CGT PPD account.

https://www.tax.service.gov.uk/capital-gains-tax-uk-property/manage-clie...

Please note a digital handshake must take place where the client gives authorisation for the agent to act on their behalf."

They have also said:
"If your client is digitally excluded they will be able to contact our HMRC Extra Support Helpline and we will help them register for a CGT property disposal account and provide them with a CGT PPD reference number which they can share with you as their Agent. Once the account has been created an agent can request authorisation through Agent Services. HMRC can then help the client authorise the agent-client relationship by telephone, enabling the Agent to act on their client’s behalf." But have not yet provided the number for the "HMRC Extra Support Helpline" or advised who they will recognise as 'digitally excluded' for this purpose.

HMRC have been told on the HMRC/Agent forum that this is an incredibly unwieldy way to do things for something with a short deadline for submission, particularly where the client has already authorised their agent for SA and they appear on your client list, but HMRC will have none of it.

Thanks (5)
Scooby
By gainsborough
19th May 2020 11:52

Thanks for the link Paul - really helpful as will be needed soon. I assumed that it would be like the NRCGT return but better allow a bit more time for the "hoops" you mentioned!

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Replying to gainsborough:
By Paul D Utherone
19th May 2020 15:17

At least is in NOT that damn NRCGT 'structured email' submission, but still a major PITA to deal with as an agent.

Also note that there are reports of clients having difficulty starting the process and getting registered for 30Day CGT reporting.

Thanks (1)
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By Tomazaan
26th May 2020 20:10

I have gone through the process for two clients (they were joint owners of the property). The system worked but there were a couple of glitches.
(1) Both clients had to set up their own Government Gateway accounts.
(2) They then set up Capital Gains Tax Service accounts. They were given the long reference number which they sent to me.
(3) I logged on to my ASA account and asked that they appointed me as agent.
(4) I got sent a digital link which I sent to them.
(5) They used the digital link to appoint me as their agent.

All of the above worked OK apart from one client had great difficulty in setting up the Government Gateway account.

(6) I then had to fill in a long questionnaire/ CGTS return that was tiresome in the extreme. In effect I had to fill the information in twice as their information was nearly the same. You have to estimate the available CGT allowance and the client's likely income in 2020/21.
(7) Once filled in, I printed off a copy of the return and sent it to my clients for approval. I was able to save it (and the system keeps a copy for 30 days (I think)).
(8) Once they had approved it, I filed it.
(9) I got a confirmation email with details on how to pay the tax. I was told that my clients had also been sent a payment request email but I forwarded my copy of the email to them as well.
(10) They both paid the tax and I was able to check a few days later on their CGTS accounts that the tax had been paid. They got confused about which reference to use and used the wrong ones but the tax arrived in the right place so all was OK.

I found completing the returns via HMRC's systems very, very cumbersome and would hate to have to fill in a large number of them.

I was lucky in that my clients are digitially aware and were able to do their bit without much prompting from me. Most of my clients would need me sitting next to them to enable them to get through their parts of the process.

Thanks (5)
Replying to Tomazaan:
Scooby
By gainsborough
27th May 2020 09:35

Thanks Tomazaan. Sounds like yet another joy to look forward to this year!

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Replying to Tomazaan:
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By newmoon
27th May 2020 09:54

Tomazaan - thank you very much for your post with the detailed procedure.

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Replying to Tomazaan:
By Paul D Utherone
28th May 2020 09:20

A ridiculously long-winded, tortuous process, that requires clients to be reasonably computer savvy, as has been pointed out to HMRC numerous times in the HMRC/Agent Forum to no avail sadly.

My aged mother manages pretty well with computers & online stuff, but the thought of having to talk her through this process does not bear thinking about. I should probably need to get her on a Zoom meeting and then take over her machine remotely, which is how I have ended up providing IT support to her recently. Presumably that would not be against HMRC's not unreasonable "you must not use your client's PTA" rule

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By Justin Bryant
27th May 2020 12:22

See a potential work around for non-UK residents here: https://www.tax.org.uk/policy-technical/technical-news/report-and-pay-ca...

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Replying to Justin Bryant:
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By Mister E
09th Jul 2020 14:32

I have a client who attempted the 'quick register' with an email address as non-UK resident and the system still wanted to set up a full GG account.

They may have clicked the incorrect link, but assures me they didn't.

This really is a backward way of dealing with all this, I have pointed this out on the HMRC forum but as above falls on deaf ears.

If HMRC require the individual, etc to register first then it has to be just a CGT record, without the whole GG malarkey, once the client indictaes an agent is dealing with. It's just too much for many clients.

Anyone's experiences of a non-UK resident trying the workaround would be handy to hear.

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Replying to Mister E:
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By Justin Bryant
20th Jul 2020 15:04

I just phoned HMRC CGT helpline and they now (finally) seem happy to post you a paper form re "digitally excluded" clients per the ICAEW guidance below:

https://www.icaew.com/insights/tax-news/2020/july-2020/deadline-approach...

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Replying to Justin Bryant:
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By Mister E
20th Jul 2020 18:26

We managed to get one too, but the form is not designed for non-UK residents at all.
And then there is the issue of signing it with the 30 day deadline.
We are going to send it in as our firm completing it on behalf of the client, as it would online, and see the HMRC reply.

We have also been in contact with CIOT over these issues and it appears HMRC are aware of the 'gremlins'. More like the complete oversights!

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Red Leader
By Red Leader
19th May 2021 18:25

Thought I would re-activate this old thread as it's relevant to my query.

I followed Tomazaan's useful guide above (26th May 2020 20:10). I got down to (2) no problem, client has given me the long reference, 15 characters long.
For (3), I have logged on to my ASA account - not my normal HMRC agent a/c - but cannot see anywhere 'Report and pay a client’s Capital Gains Tax on UK property'.

Any ideas?

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Replying to Red Leader:
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By Wanderer
19th May 2021 18:57

You have to go to the
Ask a client to authorise you link first
then to
An individual or sole trader
then to
Manage a client’s Capital Gains Tax on UK property account
First link is near the top of your ASA:-

Quote:
Client authorisations
You must ask your client to authorise you through your agent services account before you can access any services.
Copy across an old authorisation or create a new one.
Ask a client to authorise you
Track your authorisation requests from the last 30 days
Copy across more VAT and Self Assessment client authorisations
Cancel a client’s authorisation
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Replying to Wanderer:
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By Wanderer
19th May 2021 18:59

It might only appear after at least one client has authorised you but later you should see:-

Quote:

Tax services you can manage in this account
Making Tax Digital for Income Tax
Making Tax Digital for VAT
Trusts and estates
Capital Gains Tax on UK property
Other tax services
Thanks (1)
Replying to Wanderer:
Red Leader
By Red Leader
19th May 2021 19:46

I went to Main Menu/Authorise client and got this:

ERROR: You are not permitted to use this service. This may be because:
you are a VAT Agent
you are not activated for one or more services

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Replying to Red Leader:
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By Wanderer
19th May 2021 20:29

You are not in your Agent Services Account. Log in using this link:-
https://www.tax.service.gov.uk/agent-services-account

Thanks (1)
Replying to Wanderer:
Red Leader
By Red Leader
20th May 2021 12:07

Unf***ingbelievable! I log in not using the link but using my ASA id and I get nowhere. But if I log in using the link and the same ASA id I get to the right place. The irony is that the actual CGT calculation is easy, but being able to file the CGT return is Kafkaesque.

Thank you anyway for your very welcome help.

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Replying to Red Leader:
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By Wanderer
20th May 2021 12:18

One further tip.
Once you get the client's CGT reference store it together with their home postcode somewhere where you can easily copy & paste them. You will need these multiple times in the process, i.e. every time you try to do anything for this client. You may be staggered at how ridiculous the design of the HMRC system is to access their details. Using this tip will help keep the stress levels down.

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Replying to Wanderer:
By SteveHa
20th May 2021 12:41

I've also just learned (to my cost) if you return to a started online return, and amend something, you have to recomplete the whole (and some of the subsequent) sections. You can't just amend one box and expect that to do.

Oh, and have you have more than one client to do, you have to log out and log back in to change client.

Bloody farce.

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Replying to SteveHa:
Red Leader
By Red Leader
20th May 2021 13:00

I'm retiring next year - hip-bl00dy-hooray!

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