HMRC prompts disclosure of CGT liability on sale of shares

HMRC has written to taxpayers who may have sold shares and failed to include the disposal on their tax return.

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In its latest one-to-many campaign, HMRC has checked information on share disposals against self assessment tax returns. Where a disposal has not been returned, HMRC has advised the taxpayer that they may have capital gains tax (CGT) to pay.

In the letter, HMRC explains what is meant by a ‘disposal’ and identifies situations in which no CGT may be due (eg, where total gains are less than the annual exempt amount). HMRC advises the taxpayer to check their return and sets out the action the taxpayer should take. Two different versions of the letter have been used, depending on whether the taxpayer is within time to amend their return.

If the taxpayer has CGT to pay and they are in time to amend their return, they should follow the process on gov.uk. If they are too late to amend their return, they should instead write to HMRC with the information set out in the letter.

If the taxpayer believes that no CGT is payable, they should write to HMRC and explain why this is the case.

HMRC states that the taxpayer must act within 60 days of the date of letter to avoid an enquiry or compliance check.

Further information:

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