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CGT Declaration...how did that conversation go?

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Group Chair: I have a cunning plan.....ask people to report and pay their CGT within 30 days of sale of their property, we get the tax sooner.

Group: Sounds great, how will it work?

GC: well, they will do it electronically on a separate system from SA (so we can then charge interest, penalties etc without disturbing SA).

Group: so the agent can simply make the disclosure for their client....like they do for their SATR (with a bit of tweaking from the software providers)?

GC: not quite, because its a separate system, they will have to get authority and it will be done using the Revenue software ....the client will go via his personal tax account and authorise the agent...

Group: Oh, but many of these people don't have a PTA because they have...erm....agents?! Well I guess at least they won't have report the gain on their SATR too....

GC: Not quite, because of the income would be estimated, they will need to confirm it via the SATR to ensure the CGT is correct.

Group: But isn't it on a separate system....

GC: well yes, so not only do they declare it on their SATR, strictly they should then revise the original declaration in order to then correct the CGT that is actually due!  This is because we are running two separate systems, sorry did you not listen to the first part...

Group: So will there be a paper version, as we are mindful that a significant proportion of the affected demographic is of the older generation?

GC: They will have to ring up and request a form, as we want to at all costs ensure this is as difficult a system as possible to adhere too (did you not hear the part about penalties)....

Group: but we would have to send out the forms pretty sharpish...and then process them quickly:

GC: its ok, we will give the taxpayer 60 days to submit the declaration on paper, they will then get 60 days from when we issue a notice, to settle the CGT.  Erm....we have a little backlog at the moment, so we are giving ourselves 6 months or so to process the declarations....but still 10 months is earlier than it was before....

New HMRC Junior: Surely it would be better to link the disclosure with the SATR system, and better still get buy in from software companies so a disclosure can be easily made by the agent (afterall most software allows a roll forward to allow the ability to estimate  for a future tax year etc).  This would mean the actual gain would only be input once, with any adjustments made to the initial declaration wthin the respective Tax Return, and associated interest etc charged based upon the due date of the CGT processed through the SA system.  

GC/Group: tumbleweed.....

GC: Now thats boxed off, next on the agenda........getting tax on rental income sooner.....I have a cunning plan.....

 

 

 

 

Replies (2)

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By Justin Bryant
18th Nov 2021 13:55

Very good. Many a true word said in jest.

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By Paul Crowley
18th Nov 2021 14:11

The whole thing is a box of snakes
Your choice to restrict it to the CGT thing or to the organisation

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