Hi
I am currently submitting a Self Assessment for a client. They sold a property in the year and had a gain of £71,509.
After entering the details into the Captital Gains Section of the Self assessment the CGT is calculating as £14,340 ... I cannot see anywhere where i can claim the annual CGT Allowance of £11,000 ?
Can anyone help?
Thanks
Janine
Replies (10)
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What's the problem?
Apart from unnecessary rounding (you mean £34,509 at 28%) then what is the issue. The total gain you have taxed is £60,509. What is the difference between that and £71,509 again? £26,000 at 18% tax rate£34,000 at 28% tax rate
EDIT john beat me to it.
There you have it then. Tax is calculated on about £11k less than the gross gain, so despite what you say annual allowance has been taken into account.
Paper
Would you not normally do the capital gains computation & other self assessment tax out on a piece of paper/spread sheet (even if only rough back of envelope type) prior to entering all the details so would have already worked out the tax payable AFTER you had factored in the £11k?
Even though we use tax software it would always be checked to make sure it is at least in the right ball park but it seems to be now a days that if the computer says YES then it must be correct.
Maybe the ACCA exams have been dumbed down quite a bit in recent years. Certainly in the old days this is something that a CCA with a PC would not have to ask a question about...!
Paper
I always work out the tax myself before starting to enter the figures onto the return. It's not so much a check on the software as a check that I've entered the details correctly.
But it does mean that I understand the entries I'm making.