Capital Gains Tax

Malcolm Swallow
2 days ago
3 min read

Sadly HMRC 'improved the efficiency' of Capital Gains Tax a few years ago. Obv this means they just made it harder for taxpayers, without actually achieving anything, even for themselves, except perhaps justifying employing even more civil servants to administer the new nonsense they have created. On the good side, the new yacht Abell SilkenSunset, has been ordered off the back of all the extra fees generated for us.

In the old days, whenever you flogged a couple of acres off the Estate, you stuck the Capital Gain on your tax return at the end of the tax year, and paid the resultant tax along with your self-assessment tax due. -Simples.
Now you have to do an extra return within 60 days (NOT two months!) of selling something that CGT might apply to.

NB. Other CGT events - these still just go in at end of year

Firstly you need to work out whether you have actually generated a CGT event, Remember it's not just actual Property that CGT applies to. Flogging jewellery, medals, pictures, crypto junk etc. is all netted in.
Exempt are obvious things like gold/silver coins because technically they're legal tender,
and the house inc. garden you live in (at the moment), as long as it's 5,000sq m. or less.
Similarly Prizes, betting (includes the National Lottery and Premium Bonds)
Many government securities are also specifically exempt - anoraks please see list here
an interesting exemption applies to private cars of any age/type. So your Roller sold at a profit is ok
Selling private assets for less than £6k is exempt generally.
Avoid doing anything you consider non-CGTable, regularly, as in general, traders in anything are taxed on their Trades even if it's in something otherwise exempt from tax.
Does it include my overseas properties? - guess!
I'm not in the uk, and I've sold a uk house - guess!
I'm not British but I live in the uk, and have sold my collection of Empire war medals - guess!

Admin rules If you're ensnared by this new 'efficiency' drive:-

Make a little spreadsheet, totting up how much it was, what you sold it for, and what other costs have you incurred in the buying/selling processes.
The difference is the Gain.
then..................Get a cup of strong coffee, and top up your blood pressure meds.
You need your utr - not got one? click here
then you need to log on to the special CGT gateway using your government gateway login - not got a govt gateway login? click here
register here
The Gateway will issue you with a magic reference with the letters "CGT" buried in it. Take note, as you will need to quote this reference when you pay the CGT due
registered!
enter the system here
Once you've got that far you will need to enter summary details of your Gain,
You will need a pdf/jpg of your calculation of the Gain ready to upload to back up your Return
and the software will tell you how much tax to pay.
Can your accountant do all this for you (yes by 'lying')

IMPORTANT NOTE
Say you flog a property on 3rd April 2026, and for some unfathomable reason you rush to file your 25/26 SA Return, BEFORE, filing the CGT return? Horror, the system will refuse to accept your CGT return, it must go in first!

Is there a better way to do this?

Well after 48 working parties, 78 focus groups, and 10 minutes actual Thought, why not.....................

Abolish the CGT return for selling a property?
Just tell the solicitor to deduct 20% from the proceeds of selling any of your Property, and send it to HMRCy EXACTLY LIKE THEY ALREADY DO FOR Stamp Duty on property.
I'll soon do an SA return if I think I've overpaid, at the end of the tax year.

numptiesnumptiesnumptiesnumpties.................

Thank heavens for civil servants reliably coming up with practicable solutions to all life's little problems.

OTHER

detailed notes here from ATT association website

HM Guv notes here

Need to pay some tax? click here for how.