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Filing a CGT 60-day report

Client acquired different shares in property at different times. What to do, what to do?

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Am completing an online 60-day CGT residential property report.

Client was gifted 1/3 share in the property by her parents during their lifetime. MV obtained.

Father died some years later, and his share automatically went to his spouse (client's mother). Mother then died some years later, and client then inherited the further 2/3 share in the property. Again, MV obtained.

So, my client has two acquisition dates and one was a gift and one was an inheritance.

The online CGT reporting facility doesn't appear to be able to cope with this type of arrangement (only allows for one acquisition date and either a purchase OR a gift OR an inheritance).

As a workaround I am entering the date of acquisition as the date of the inheritance and the total market value as the appropriate sums of the values as at the date of the gift and as at the date of the inheritance.

Any other suggestions on how best/a better way to achieve the most appropriate report acceptable for HMRC?

Thanks.

Replies (7)

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RLI
By lionofludesch
17th Nov 2021 18:33

I'd use the earliest acquisition event for the form.

I doubt if anybody will look at the entries and, if they ask, just point out that their form is carp. They'll probably agree.

Obviously, make sure the gain and the tax due are as correct as you can make them.

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Replying to lionofludesch:
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By Software Seeker
17th Nov 2021 18:43

Thanks, and yep I'll make sure the calculated gain and tax is ultimately correct. And I'll ensure the 2021/22 Tax Return clarifies the exact position. Cheers.

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Scooby
By gainsborough
17th Nov 2021 18:48

I had a similar situation and entered the earlier acquisition date but with full details on the uploaded attachment.

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Replying to gainsborough:
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By Paul Crowley
17th Nov 2021 20:06

Agree
The speadsheet is the true calculation
Or even just take the calculation from the calculation of CGT from the 2022 tax software

I have said it before
If the tax is correct, the tax forrm is compliant enough given that HMRC do not do good software

Tax return software does notidentify gift and inheritance as relevant

Why could HMRC not crib some bought for software?

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Replying to gainsborough:
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By Software Seeker
17th Nov 2021 23:22

gainsborough wrote:

I had a similar situation and entered the earlier acquisition date but with full details on the uploaded attachment.

Thanks and yes I'll be uploading the full comps with the submission.

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By ireallyshouldknowthisbut
18th Nov 2021 08:47

I would approach it as 3 sales myself.

And either type all 3 in, or type in the total depending on my mood and not worry about it.

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By Tax Dragon
18th Nov 2021 09:55

I'm not sure that in law HMRC aren't right. But IANAL.

Anyway, earliest date, as Lion says.

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