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A picture of semi detached houses in Manchester AccountingWEB CGT 60 day paper form trial extended

CGT 60-day reporting paper form trial extended


HMRC has extended the trial of the paper version of the CGT return for property disposals until the end of September, although professional bodies are still calling for the download facility for those who cannot file online to be made permanent.

17th Jul 2023
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HMRC’s decision to extend the trial of the downloadable property disposal return for CGT (PPDCGT) for two more months follows a four month trial which began on 28 February 2023

The downloadable forms are now available until the end of September; however, this solution is still considered a trial and not a permanent change. HMRC said it will monitor the usage of the form and will issue any further developments in the Agent Update.  

An HMRC spokesperson told AccountingWEB: “We have extended the trial of having the ‘paper’ return available to download until September to allow us more time to determine whether it is meeting customers’ needs.”

Beset by headaches

The online reporting system for the CGT 60-day reporting has been beset with issues since launching in April 2020, not least how digitally excluded taxpayers were unable to file online and had to instead call HMRC to request a CGT property disposal return be sent to them. 

Getting a paper form within 60-days of completion was one of a handful of headaches for tax agents and taxpayers, including launching the system in the middle of pandemic or concerns about the time constraints of the original 30-day window that the returns had to be submitted. 

Adding to the complaints, members of the Association of Taxation Technicians (ATT) have reported delays in processing refunds or repayments when CGT has been overpaid during the year under the '60-day' rules. These members are being advised to expect delays of up to 20 weeks. 

Calls for a permanent change

The professional bodies, in particular the ATT and CIOT, have pushed for the downloadable form for the digitally excluded. 

Helen Thornley, a technical officer at the ATT, welcomed the decision to extend the downloadable form, but added that it should be permanent “given that there will always be a number of taxpayers who have to use a paper form”.

“Paper forms are needed in a variety of situations. While the largest group are likely to be those who cannot use the CGT on UK Property service online, individuals who have already filed their self-assessment return and overlooked the property return, personal representatives who don’t want to use their own personal property account and paper filers such as judges and MPs must all use a paper PPDCGT return.”

Meanwhile, HMRC is also requesting a certain version of the form. “HMRC has also asked us to tell agents that while the forms are available to download, they would appreciate it if agents could use the latest version available online, rather than use photocopies of previous versions of the form. We understand that using out of date versions of the form can slow up processing,” said Thornley. 

While there is a push for HMRC to make the downloadable form permanently available, the online service is still HMRC’s preferred route for reporting.

Who reports

If the disposal of a UK residential property incurs a taxable gain, the UK resident must report and pay that gain to HMRC through the reporting service within 60-days of the completion date. UK residents in the self assessment system have to report the gains on their SA tax return, and the PPDCGT should be submitted before the tax return is filed. 

Replies (5)

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By Geoff56
18th Jul 2023 14:04

Despite what HMRC would have us believe, anyone can choose to file their return by paper. It is not necessary to be 'digitally excluded'.

Thanks (4)
By Hugo Fair
18th Jul 2023 19:39

Not sure as to from where those last dozen words have been sourced:
".. and the PPDCGT should be submitted before the tax return is filed."

Is this another of those 'HMRC wants - so it must be law' scenarios?

I understand that "the online service is still HMRC’s preferred route for reporting" ... but preferred is just that (a preference which indicates that there IS a choice to be made)!

Thanks (3)
By hiu612
19th Jul 2023 10:47

Executors are (effectively) excluded from online filing.
Despite the 30/60 day system being years old, HMRC show no interest in working on a digital solution.
But they also don't want to make it easy for those excluded people to get a paper return.
They need to make at least one of those two routes viable. Preferably both.

Thanks (0)
By kevinringer
19th Jul 2023 11:13

I had no idea this was only a trial. We all need to download the form and save it in case HMRC withdraw it.

HMRC needs to understand that the paper form is not the solution. We agents are having to use the paper form because our digitally excluded/challenged clients cannot complete the cumbersome digital registration and authorisation process. The solution is simple: HMRC should accept existing agent authorisation. I have had to use the paper form for 95% of my clients, but would have used it for 0% of my clients if HMRC accepted existing authorisations.

This 30/60-day CGT fiasco demonstrates the gulf between the dream world that HMRC inhabit and reality. HMRC must now accept that HMRC got this so wrong having formed a false belief that taxpayers are more digitally capable than reality. HMRC needs to re-assess MTD ITSA in light of HMRC's realisation that not only is MTD ITSA more complex than HMRC thought, taxpayers are less digitally capable than HMRC thought. Given the massive cost in HMRC resources to put 30/60-day CGT in place, and the massive ongoing cost of handling all these paper claims, HMRC needs to consider whether the costs are worth the paltry cashflow advantage of early payment of CGT. Surely the maths don't add up.

Thanks (4)
By Hometing
19th Jul 2023 12:57

They need to be available for download. Eg. a client in Singapore, say, spends the first 45 days waiting for the paper forms to arrive.

Thanks (0)