There was a article about this a few weeks ago:
https://www.accountingweb.co.uk/tax/hmrc-policy/real-time-cgt-reporting
And lo, a client has disposed of a let property, filled in the form completely wrong and got a massive tax liablity when infact it ought to be nil!
Anyone else dealt with one of these yet? I am inclined to write to HMRC and see if they will just cancel it and let us include it on his tax return.
Replies (11)
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I'm curious as to why on earth he would want to voluntarily report (and presumably pay) early when there is no requirement to.
to be fair, that page clearly gives you the option between real time and SA, cant really blame HMRC if the client chooses not to consult their tax advisor, a quick phone call or email to you would have avoided it
Agreed, also often we do not know about events later in the year, e.g. same year CGT losses, that may also affect the tax payable.
I can't help but think that this is a move to bring in 30 day reporting for all Capital Gains. It will be heralded as a 'great success' by HMRC in a few years particularly, as in cases like this, it increases the tax take.
Wouldn't surprise me if it was brought in for say all residential properties, with massive fines (as per NRCGT) for non compliance.
Wouldn't surprise me if it was brought in for say all residential properties, with massive fines (as per NRCGT) for non compliance.
Surely not. HMRC have told us, penalties are only charged to encourage compliance, and not generate revenue. That's why you only get £1,600 penalties for failing to submit a NIL Return.
I can't help but think that this is a move to bring in 30 day reporting for all Capital Gains. It will be heralded as a 'great success' by HMRC in a few years particularly, as in cases like this, it increases the tax take.
Wouldn't surprise me if it was brought in for say all residential properties, with massive fines (as per NRCGT) for non compliance.
This is already on the table as a proposal, to be introduced possibly as early as April 2020, according to ATTs annual conference I attended the other day.
Surely a straightforward Notice of Appeal, with an Error or Mistake claim, revised computation, and letter setting out the circumstances.
It then depends on how bolshie or not the HMRC person on the recieving end wants to be.
Surely a straightforward Notice of Appeal, with an Error or Mistake claim, revised computation, and letter setting out the circumstances.
It then depends on how bolshie or not the HMRC person on the recieving end wants to be.
Error or Mistake claims went out in 2010.
If you are referring to its replacement, overpayment relief, that's unlikely to be appropriate here.
I fail to see how they can finalise a CGT liability mid-tax year. There must be plenty that would need re-reviewing. How can they ascertain the tax rates? Let's say maybe a regular BR taxpayer who gets a bonus and is pushed into higher-rate towards the end of the tax year.