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Is 30 Day CGT Return required?

CGT liability will be covered by tax deducted at source from employment income.

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Bit of an unusual one. Client has just sold a residential property at a gain. There will be capital gains tax due of around £1,000 on this.

They have also jut cashed in a pension. Taking account of their other income, they will likely get about £2k back from this pension when the 2022 return is done. 

Net position is going to be a reayment of  approximately £1,000, but the CGT aspect of this is a £1,000 liabiity. Do they need to do a 30 day return and pay the tax now?

I'm off to investigate but was interested if anyone had come across yet. 

Replies (6)

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By David Ex
20th Jul 2021 15:46

I’d guess yes. There is a CGT liability. Not familiar with the reporting rules but I’d be amazed if they took account of prospective income tax refunds.

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By Duggimon
20th Jul 2021 15:57

Yes, they have to pay it regardless of the net year end position, the only exception would be if the 30 days straddled the end of the tax year and they put their return in instead.

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Lone Wolf
By Lone_Wolf
20th Jul 2021 16:38

Yeah that's the conclusion I'm coming to having read the legislation unfortunately. Thanks to you both.

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RLI
By lionofludesch
20th Jul 2021 18:31

I vote yes.

On the grounds that they are different taxes.

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By JB101
21st Jul 2021 11:37

Don't forget, this is a reporting requirement not just a payment requirement.
Capital Gain needs to be reported within 30 days and this means CGT payable then.
The income tax has nothing to do with this so changes nothing.
I don't think this is a "Bit of an unusual one" as it will be very common, although not usually noticed until after the end of the tax year when completing the Tax Return.

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By Cloudcounter
22nd Jul 2021 09:47

Can your client not make an in year claim for repayment of the tax over deducted on the pension?

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