CGT Payments

[XFool]

If you think CGT is complex now then you should have seen it 20 years ago when gains had to be adjusted for inflation!

I do remember that (why I have always hoped to avoid CGT), that is about how long ago it was that I last dealt with CGT.

Thanks for all replies.

XFool

[XFool]

An update:

My online tax account now contains the following information:

"Your Income Tax has not been calculated yet for 6 April 2022 to 5 April 2023

There is no need for you to contact HMRC about this.

Income Tax for 6 April 2022 to 5 April 2023 will be calculated over the coming months, usually between June and October. Your Income Tax will be updated when that happens.

You will only receive a letter by post if you paid too much or too little tax. It will explain how to get your refund or pay any tax you owe."

I'd hoped to make the effort to get my SA away a lot earlier this year. However, I still don't know the outcome of the previous (Tax Year 2021 - 2022) CGT issues - see OP. So, can I just ignore the previous year's CGT matters and go ahead with my for 2022 - 2023 SA regardless?

[Gersemi]

I'd hoped to make the effort to get my SA away a lot earlier this year. However, I still don't know the outcome of the previous (Tax Year 2021 - 2022) CGT issues - see OP. So, can I just ignore the previous year's CGT matters and go ahead with my for 2022 - 2023 SA regardless?

1. Do you have any Capital Gains to declare for 22-23? If not then there is no problem with you submitting your return as the previous years CG will not affect it.
2. If you do have gains then do you have any previous years losses that may be available to set against them? If not then again the previous years CG position will not affect 22-23 so you can go ahead.
3. If you may have losses to set against CG gains then you do have a problem as you will not know what losses are available until the previous year is settled.

[XFool]

I'd hoped to make the effort to get my SA away a lot earlier this year. However, I still don't know the outcome of the previous (Tax Year 2021 - 2022) CGT issues - see OP. So, can I just ignore the previous year's CGT matters and go ahead with my for 2022 - 2023 SA regardless?

1. Do you have any Capital Gains to declare for 22-23? If not then there is no problem with you submitting your return as the previous years CG will not affect it.

Ah, that is the question. The initial issue was over what year a capital gain had actually occurred. Everything hinged on that. Up thread some felt it was in the previous year, this might well be so but I was unsure. All the other reportable gains or losses depended on this timing issue. All this only came to light at the last moment as I was completing my SA fairly late - after the date for asking HMRC to calculate your tax etc. So, in the end I prepared a comprehensive summary in text and figures and dumped it all on HMRC as an attachment to my SA.

3. If you may have losses to set against CG gains then you do have a problem as you will not know what losses are available until the previous year is settled.

It's more a matter of can I just go ahead now with with my SA for the following year, without knowing the outcome of the above?

[Gersemi]

1. Do you have any Capital Gains to declare for 22-23? If not then there is no problem with you submitting your return as the previous years CG will not affect it.

Ah, that is the question. The initial issue was over what year a capital gain had actually occurred. Everything hinged on that. Up thread some felt it was in the previous year, this might well be so but I was unsure. All the other reportable gains or losses depended on this timing issue. All this only came to light at the last moment as I was completing my SA fairly late - after the date for asking HMRC to calculate your tax etc. So, in the end I prepared a comprehensive summary in text and figures and dumped it all on HMRC as an attachment to my SA.

3. If you may have losses to set against CG gains then you do have a problem as you will not know what losses are available until the previous year is settled.

It's more a matter of can I just go ahead now with with my SA for the following year, without knowing the outcome of the above?

I think you are saying that you may have CG to declare for 22-23 if it shouldn't have been declared in 21-22 and if it should be declared in 22-23 then you do have losses that can be set against them. So the outcome of 21-22 will affect 22-23.

You could just submit the return without any CG, if you don't have any other gains to declare. But if you have other CG for the year you could lose the chance to claim any losses from 21-22 against them.

In your position I would contact HMRC to see what they are intending to do about 21-22. You haven't followed the correct process because you didn't self assess the CG for 21-22. However if you think the result of the CG computation should be a loss then you may find that HMRC aren't intending to do anything!

[In your position (ie finding out at the last minute that there was a problem that I couldn't readily find an answer for) I would have done a computation as best I could and made a note explaining the assumptions I had made. That way if HMRC does an enquiry and they decide you were incorrect, they will amend the computation and the amendment will flow through to later years. Of course if they don't enquire your computation would stand.]

[XFool]

It's more a matter of can I just go ahead now with with my SA for the following year, without knowing the outcome of the above?

I think you are saying that you may have CG to declare for 22-23 if it shouldn't have been declared in 21-22 and if it should be declared in 22-23 then you do have losses that can be set against them. So the outcome of 21-22 will affect 22-23.

Yes. At least that the gain may possibly be in the later year and some of the claimed losses may then be invalid (if not already - that is a separate matter) - as I have never reported them previously.

In your position I would contact HMRC to see what they are intending to do about 21-22. You haven't followed the correct process because you didn't self assess the CG for 21-22. However if you think the result of the CG computation should be a loss then you may find that HMRC aren't intending to do anything!

Overall it won't be a loss. I think I will just wait a bit longer, possibly prepare but not submit my SA and then contact HMRC later to see what they say.

In your position (ie finding out at the last minute that there was a problem that I couldn't readily find an answer for) I would have done a computation as best I could and made a note explaining the assumptions I had made. That way if HMRC does an enquiry and they decide you were incorrect, they will amend the computation and the amendment will flow through to later years. Of course if they don't enquire your computation would stand.]

That is what I was trying to do, but there were simply too many unknowns (to do with possible loss claims as well) and the CGT pages online just didn't seem to match the situation, so after trying I gave up and did my SA for income tax and attached a full and detailed explanation of all matters relating to CGT.

I have always ignored CGT (that includes any loss claims too) as I don't usually expect them or they are usually below the threshold.

[scrumpyjack]

You can, I think, report CGT losses up to 4 years late.

You can amend your tax return after it has been submitted. For the 2021 to 2022 tax year, you’ll usually need to change your return by 31 January 2024. So you can submit your return and change the CGT figures later on.

If in doubt you can pay the worst case tax and then get a refund (with a repayment supplement) when all is finally sorted out, or don't pay and run the risk of interest charges.

Don't give up on the old losses. Notify the estimated figures ASAP to protect your position.

[Ldak]

Can't help with takeovers, liquidations etc but I have found http://www.cgtcalculator.com/ to be the best of the free online CGT calculators to use.

It handles x1 rights issue per stock, can take data over multiple years, spits out per year results and seems updates to current thresholds.

Just need to read around the howto's on the site which are well written up.

[XFool]

Well, I only recently completed my 2022-23 tax return and have now received an updated Tax Coding notice for the year 2023-24.

Beyond that, so far not a dicky-bird from HMRC about the original CGT situation. Perhaps they have just written it all off as too complicated to bother with?