Need to file a tax return?

[ptpash]

I found the following produced on HMRC website which if satisfied requires a tax return to be completed:

"Income above a certain level from savings, investment or property

If you don't already complete a tax return, you'll need to do so if you receive any of the following:
£10,000 or more income from savings and investments
£2,500 or more income from untaxed savings and investments
£10,000 or more income from property (before deducting allowable expenses)
£2,500 or more income from property (after deducting allowable expenses)
annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
income from the estate of a deceased person on which tax is still due"

I can find no reference in any legislation to the above; is there any ?

Where have the figures come from?

[mullet]

I think that the figures are administrative rather than based on legislation. So they are probably just made up by HMRC, with the intention of having appropriate people within the SA population and (in theory) not bringing people into SA unnecessarily. The relevant legislation in terms of tax returns etc is

Section 7 TMA 1970 - the requirement for an individual to notify chargeability to income tax or capital gains tax.
Section 8 TMA 1970 - if HMRC issues a notice to file (either a standalone notice or one carried on the front of a tax return) then the individual must file a tax return in accordance with the legislation.

[ptpash]

Thank you.

If my only income for a tax year is say £3,000 of untaxed savings income, despite HMRC's administrative figure of £2,500 being exceeded, under the legislation I do not need to inform HMRC of my chargeability nor request a tax return for completion ?

ie the £2,500 has not statutory force.

[mullet]

If £3,000 untaxed interest (I guess you have completed form R85?) is your only income, then you are right. There is no need to notify chargeability to income tax (because you are not chargeable) and there is no statutory requirement for you to ask for tax returns to be issued. But if HMRC decide to send you a tax return, then you have to complete it - even when the net result is no tax to pay.

[ptpash]

Again, many thanks.

The reference in my first posting was from HMRC website.

However i note that the Notes to filling in the Tax Return re CGT state:

"• you disposed of chargeable assets which were worth more than £40,400, OR • your chargeable gains (before the deduction of any losses) are more than
£10,100, or"

If my disposals amount to say £50,000 (ie more than £40,400) but my capital gains are below £10,100 under what authority are HMRC stating that I must complete the CG pages?

[ptpash]

mullet, would appreciate your thoughts.

Thanks in advance.

[mullet]

If my disposals amount to say £50,000 (ie more than £40,400) but my capital gains are below £10,100 under what authority are HMRC stating that I must complete the CG pages?

All I can think of is that it is in the CG notes - and I accept that this is not much of an answer. And the notes have always carried words such as "These notes are for guidance only ..."

Looking at it from the other direction, do you not wish to complete CG pages in respect of a particular transaction? If it is land/property or shares, then remember that HMRC receives information from many sources - and is getting better at data matching. So if you don't declare the disposal you may well be at higher risk of an enquiry. Granted, if your net gain is below the AEA there will be nothing to worry about and no tax to pay, but no-one needs the hassle of an enquiry.

[ptpash]

Mullet

Thank you very much for your time and advice.

What i take from your comments is that it is the legislation that matters not HMRC comments which appear to pluck figures out of the air.

Again, many thanks.

[maths]

I agree with mullet's comments.

I'm a little surprised that more comments were not made by others.

It seems to me that most taxpayers will be completely ignorant (understandably) about the figures quoted by you from HMRC's website; none of these appear in any Notes to the Tax Return (although reference is made to the capital gains figure of £40,400 (although no statutory support for it)).

As far as I am aware, all that matters is that a Tax Return must be completed if sent out by HMRC (TMA 1970 s 8) and if this does not happen then the taxpayer's obligation is restricted to notification of chargeability (TMA 1970 s7 ) otherwise no need to make a Return despite HMRC's website comments.

Perhaps others disagree?

[maths]

(although reference is made to the capital gains figure of £40,400 (although no statutory support for it)).

Apologies to ptpash as my bracketed comment above is incorrect; TCGA 1992 s 3A provides the statutory support.