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Changes to CGT reporting requirements

Q: My client has sold a UK residential property in May 2020. I am aware this is subject to the new 30 day CGT reporting requirements but as the disposal is only part way through a tax year how do they know what rate of tax to apply to the gain.

A: Your client is required to make a reasonable estimate of their annual income and work out the CGT due based on that estimate. They can take into account the CGT annual exemption and any capital losses carried forward but they cannot anticipate future losses or reliefs (such as EIS not yet subscribed for). You client will also need to report the gain again (after the year-end) on the normal self-assessment return and pay any underpayment or claim back any overpayment. If no CGT is due, then the online 30 day form is not required.