When and how to pay CGT

bigyin_2

I just submitted my SA using the HMRC online system.

I have calculated that I am due to pay about £2k in cgt on a business I sold in November 2008, but although the SA form has a section on cgt which I filled up, the final amount due does not include the cgt element.

Do I just pay the amount I have calculated, or do i get sent a separate bill for it. Is it due by 31 Jan the same as other income tax ?

thx

Mikeyorks

I can't explain why it's not showing in the calculation. But ..... CGT is bundled with SA for calculation / payment purposes ....... and has the due date of 31st Jan. It is separately accounted for (SA is Income Tax .... CGT is [obviously] Corporation Tax;)) .... but that's done by algorithm after the event ....... so I don't see why it should slow down the calculation?

Login again tomorrow or Wed and see if the Statement has changed at all after it's been through the HMRC Batch processes overnight? Failing that .... it would be sensible to get your estimated sum paid.

If you're not set up on the HMRC Direct debit system ..... consider paying by BillPay as that gives you up to Sunday to make the payment

bigyin_2

Ok I'll see what the system says tomorrow. I was surprised though that even before I submitted the return the 'calculation' should have shown what I was due. I'm pretty sure I filled up all the necessary boxes, the checker part said I was clear to go.

bigyin_2

I have logged in to my account this evening but there is no change to the balance. In fact it's still showing last years amount, so even the Income Tax credit I'm due has not shown up nor the CGT debit.

Strange system

dtaylor84

bigyin wrote: »

I have logged in to my account this evening but there is no change to the balance. In fact it's still showing last years amount, so even the Income Tax credit I'm due has not shown up nor the CGT debit.

Strange system

If the CGT amount doesn't show up in the calculation before you submitted the return, then HMRC don't think you owe CGT.

If you do owe CGT you've most likely completed the form incorrectly, or (less likely) there is something wrong with the online SA system. I suggest you double check what you entered against what you used to calculate the liability yourself. And also check you're doing the calculation correctly - you did remember the annual exempt amount of £9600?

bigyin_2

Well I went over the online form several times : my case is fairly starightforward, I think, here are the numbers:

Partnership entered 2005 paid £20k initial investment
Additional monies paid up to 2006 was £12500
total invested £32500

Sold share of partnership in 2008 for £74k with £167 costs

CG = £41333
claimed EA so less 4/9 gives CG of £22962
less personal allowance of £9600

so final amount to be taxed = £13362 x 18% = £2405 cgt to pay

Now I'm not certain about the EA part, but without that my tax is even higher.

My income tax is such that they owe me about £500 so I should owe them £1900

These are the numbers I put into the online form and it tells me I'm due £500 back.

Do you think my calculation is correct ?

dtaylor84

Well, I'm not a tax expert, but your calculation sounds fine to me. Do your CG figures show up on the calculation page?

bigyin_2

Yes they show up on the calculation page within the CGT part of the online Return, but they dont appear at the end of the online return where the final calc is made.

and once submitted the final amount does not reflect the CG part either.

Thanks for checking my sums. I will pay an amount anyway and ask later about it.

mrkbrrws

On the page "Summary of your total gains and losses after deducting losses from gains" have you completed the box "Total gains, after losses but before the annual exempt amount"?

bigyin_2

Thank you that is where I have gone wrong.

I have put the £41333 into that box and now it tells me I owe £5000 + so now it does not show the Entrepreneurs' relief, assuming I'm due it, as if the above calc is correct my bill should be £2000 ish.

Or is ER something I claim back later ??

bigyin_2

Ah ic .... it doesn't make that very clear, but I can see that that will adjust the final number to where it should be.

Thank you very everybody for helping me out on this :beer: