Real Time CGT Reporting

Got my first client [***] up on one of these

Didn't find your answer?

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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By SteveHa
14th Jun 2018 10:12

I'm curious as to why on earth he would want to voluntarily report (and presumably pay) early when there is no requirement to.

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Replying to SteveHa:
By ireallyshouldknowthisbut
14th Jun 2018 10:19

Very simple, he googled "how to report CGT", and the first thing it directs you to is this process.

So he filled in the form, and all done in his head.

Look at the webpage:

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

If you knew nothing about tax, you may well just go for it as this chap did. I normally deal with his wife, but she died.

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Replying to ireallyshouldknowthisbut:
blue sheep
By NH
14th Jun 2018 11:13

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

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Replying to NH:
By ireallyshouldknowthisbut
14th Jun 2018 12:30

Whilst the client has not been very smart about this (he just wanted it done) it seems very much to push you towards real time.

A further issue (apart from the incorrect computation) is that we simply don't know his earnings yet, so the rate of tax applied must be wrong as his is a BR tax payer and the gain pushes him into HR, so we simply don't know how much tax is due yet!

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Replying to ireallyshouldknowthisbut:
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By Wanderer
14th Jun 2018 13:23

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.

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Replying to Wanderer:
By SteveHa
14th Jun 2018 13:40

Wanderer wrote:

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.

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Replying to Wanderer:
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By Homeworker
18th Jun 2018 11:25

Wanderer wrote:

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.
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By David Gordon FCCA
18th Jun 2018 14:31

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.

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By David Gordon FCCA
18th Jun 2018 14:31

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.

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Replying to David Gordon FCCA:
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By Wanderer
18th Jun 2018 14:42

Error or Mistake claims went out in 2010.
If you are referring to its replacement, overpayment relief, that's unlikely to be appropriate here.

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By Jholm
19th Jun 2018 16:18

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.

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