ICAEW.com works better with JavaScript enabled.


Overpayments of CGT following self assessment


Published: 28 Mar 2023 Update History

Self assessment tax return filers who have also submitted a capital gains tax (CGT) UK property return may end up in an overpayment position. ICAEW’s Tax Faculty recaps the process for claiming a CGT repayment.

Taxpayers who dispose of UK residential property are required to submit a capital gains tax on UK property (CGT PPD) return. They then need to pay the associated CGT liability within 60 days of completion.  

This may cause issues with calculating CGT liability, as it is affected by the individual’s income for the tax year and the availability of reliefs. These aspects may not be clear at the time of submission, unless the disposal falls close to the end of the tax year

For some taxpayers, this means that an estimate of the CGT is made on a CGT PPD return. There may be an overpayment of CGT by individuals who had less income than expected, or who were able to make use of reliefs.  

Some taxpayers may also need to submit a self assessment tax return for the affected tax year. For 2021/22 tax returns, an overpayment of CGT should automatically be offset against other self assessment charges. Where a repayment is due following this offset, the individual or agent will have to contact HMRC by telephone on 0300 200 3300 to request it. There is no need to amend the submitted CGT PPD return. 

Some agents have reported that they have been advised to amend the CGT PPD return, following the submission of a self assessment return, to request a repayment. However, this contradicts HMRC’s published guidance.  

Alternatively, where no self assessment tax return has been submitted, an individual can finalise their CGT position by making an amendment to the CGT PPD return. This should be done by accessing the online CGT UK property account, or by submitting a paper return for digitally excluded taxpayers. 

Further reading: 

The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.