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CGT Returns - what a damned nuisance

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I've done several "real time" CGT Returns in respect of residential property disposals, and whilst the systems are clunky, they have been relatively painless, until now.

I have four clients who between them owned shares in commercial farmland and the residential farmhouse. The property was inherited in two separate tranches in 2002 and 2017 (on the death of each of their parents). None of the clients are self-assessment clients.

I've calculated the gains, taking into account the different acquisitions, and calculated residential and non-residential separately.

The intention was to make a complete Return of all gains now. But No! HMRC systems will only accept the residential aspect now, meaning that further Returns will be required at some point in the future. Not really sure how this is going to happen.

I'm attaching documentation and calculations showing the total of the gains and split between what is now being reported (which means that HMRC should be aware that a further Return will be required in the future). Their loss, I suppose. They could have accelerated payment of the total CGT due.

But what a bloody pain, caused yet again by this ill-conceived and poorly implemented system.

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By Hometing
29th Jun 2022 11:23

The whole thing is a faff to be honest. Since many are best guesses until income rates are final post-year end, it's more of a two stage reporting; first being the 60 day on account element and then a second, final submission generally as a tax return or later amendment to 60 day account.

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By ireallyshouldknowthisbut
29th Jun 2022 11:39

And this is the 'testbed' project for MTD

I would bet quite heavily that the new tax return (if it ever arrives) will be along similar lines. Completely fragmented with zero thought about the user side of things or problem solving.

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By MCV71
29th Jun 2022 13:24

I had an issue with one for a non-resident and the rebasing year. This was the sale of land which has a different rebasing year to that of property, but the Return only qotes the rebasing year of property in its questions.
I called HMRC and their advice - just enter the figure anyway and put a comment in notes.
Another ill-designed form/system by HMRC

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