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CGT on residential property sale

CGT declaration on residential property sale

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Given that the sale of a residential property in 2020/21 (formerly let to tenants), has to now be declared within the 30 day period after completion - and relevant CGT paid: how does the same person who expects completion on another sale later in the same tax year (and incurring a capital loss) get relevant repayment of the overpaid total CGT for the tax year?

Surely he/she does not have to wait until the submission of the 2020/21 SA Tax Return?

Replies (5)

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By gainsborough
21st Jan 2021 12:28

The first two paragraphs under "Losses" in this June 2020 Aweb article suggested that you could file another report and make a repayment claim that way

Looking at the paper form, there are boxes for showing a capital loss and the CGT year to date liability if you've submitted more than one return in the year.

Given the current messy process, I am not sure how quickly any repayment claims would be handled though.

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Replying to gainsborough:
By turchyna582
21st Jan 2021 12:48

Thank you - appreciated.

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By andrewjlane
21st Jan 2021 18:34

I’ve just filed 3 separate declarations for a new client who had not filed within 30 days of sale. I made them in chronological order and the second and subsequent declaration both asked the question “is a repayment due as a result of this declaration” (or words to that effect). Whilst my client had tax to pay in all three instances, one assumes that a loss later in the year would be relieved against any gain earlier in the year. The HMRC website seems to work on a cumulative basis is it “recognises” earlier returns in the same year when submitting later ones. Hope that helps

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Replying to andrewjlane:
By turchyna582
22nd Jan 2021 09:26

Thank you.
That is at least a step in the right direction - as a gain recently reported will then hopefully be mitigated by an expected loss next month.........whether the repayment is sent is another matter. I suspect HMRC will await the submission of the SA Return for 2020/21.

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By Paul Crowley
21st Jan 2021 19:14

Well, An early tax return probably as good as trying out an unknown system

Nothing much charges after 6 April anyway

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