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Where Taxpayers and Advisers Meet

Trying to make sense of self-assessment

Mary1
Posts:12
Joined:Tue Mar 06, 2018 4:19 pm
Trying to make sense of self-assessment

Postby Mary1 » Thu Jul 22, 2021 1:42 pm

Dear All,

I would appreciate some guidance while I struggle through the latest incarnation of the Government's self-assessment. I normally have income from property. I sold my buy to let flat in December and in early January as I was legally obliged to do, submitted and then paid CGT. The self-assessment form I am currently filling in asked me if I had disposed of any property for which CGT is payable. As I have already created a CGT account back in January and paid the amount requested, do I assume I say "No" to this question as it has already been addressed? Out of curiosity I said "Yes" and was taken to the CGT section where it appears I have to go through the whole questionnaire again. There doesn't seem any joining the dots - shouldn't it have just recognise me and added my CGT account information to this section. I then, for the sake of my sanity, deleted this whole section and now have my return on hold until some kind soul can explain to me what to do!! As the flat was sold in the 2020/2021 tax year I do have some income to declare, which I have done. It's the disposal of assets question that floored me. I will also post this in the CGT Section as well.

I look forward to some (idiot proof!) advice.

etf
Posts:742
Joined:Mon Nov 02, 2009 5:25 pm

Re: Trying to make sense of self-assessment

Postby etf » Thu Jul 22, 2021 4:29 pm

The following lifted from the link copied below may assist (my bold).

https://www.litrg.org.uk/tax-guides/capital-gains-tax/capital-gains-tax-reporting

Disposals of UK land or property on or after 6 April 2020 for which a return is required within 30 days

If you are required to complete a return within 30 days of completion of the disposal of UK land or property, whether or not you are UK resident, you should use HMRC’s Report and pay CGT on UK property service for disposals on or after 6 April 2020. This is not optional – you must do it if you fall within the criteria for making a 30-day report.

Guidance for non-resident individuals who do not have a National Insurance number or Unique Taxpayer Reference (UTR) can be found here.

Again, if you use this service to report your gain(s), you will not need to file a Self Assessment tax return for that year assuming you have no other reason to do so. However, if you do need to file a Self Assessment tax return then you will need to report the gain(s) again on this return.

Jholm
Posts:184
Joined:Mon Mar 11, 2019 4:22 pm

Re: Trying to make sense of self-assessment

Postby Jholm » Thu Jul 22, 2021 4:40 pm

^^^ Property income until sale is likely sufficient to warrant a tax return being filed.

Mary1
Posts:12
Joined:Tue Mar 06, 2018 4:19 pm

Re: Trying to make sense of self-assessment

Postby Mary1 » Thu Jul 29, 2021 12:21 pm

Thank you for the explanations. I reported and paid the CGT in January, 3 months before the end of the financial year and overestimated income as the year wasn't over. There seems no way to link the Property Account number and my paid CGT to the Tax Return I completed last week. My tax account says I now owe the CGT amount which requires payment before 31st January 2022! I can provide proof of payment but wondered if I should just wait until HMRC catches up or ring and speak to a human being and let them know what's happened. I am in line for a tax rebate but not sure if the two accounts - Tax and Property actually are joined up!

Thanks again.


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