CGT 30 days, Self Assessment

ChilliBob

Guys, 
I'm looking for some advice on a complex issue... (well, complex for me!) 
Basically my Mum sold he deceased sisters house, of which she owned 1/3rd via the intestacy rules etc (no will).

A tax accountant helped her work out the gain and pay her share to HMRC. This was all done almost exactly a year ago, and she had a recepit from them etc. 

Her tax accountant told her she needed to register for self assessment, which I think he must have done on her behalf.

She's submitted her tax return, basically just with pension info as she doesn't any savings earning interest or anything else like that. 

She's had a letter back from HMRC saying the cgt part isn't filled in correctly, do it and send back to them or she will get £100 fine. 

She has already sent it back once putting on the notes section that she has paid the tax and has given the figure and the accounts details, so, she's at a loss what to do next.

I'm not too sure either really. 

She's loathed to go back to the tax accountant as she doesn't want to pay yet more money out, and as she sees it the tax bill has been settled. 

Any ideas the best way to proceed? Also, how to get her removed from SA for next year?

Any help much appreciated, my Mum wants me yo help and doesn't want professionals, but I'm a little lost! 

Dazed_and_C0nfused

AIUI complying with the 30 days procedure doesn't them mean you can then ignore the CGT for Self Assessment purposes, the gain still needs to declared as normal.

Not sure exactly how it all works but presumably she will get credit for the tax paid via the 30 day process (or she needs to include it somewhere on her return).

I wouldn't worry about next year just yet, get the 2020:21 return out if the way first 

ChilliBob

Yeah, this year is the priority!

I wonder if I login to her online portal if it'll show her as having paid that portion and if we add the amount and not the calculation perhaps that will be enough? 

[Deleted User]

ChilliBob said:

Yeah, this year is the priority!

I wonder if I login to her online portal if it'll show her as having paid that portion and if we add the amount and not the calculation perhaps that will be enough? 

Dazed is correct. The disposal must be included on the return and the tax paid already on it. See attached manual CGT pages (similar to the online CGT section). Note questions 9 and 10.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974132/SA108_English_Form_2021.pdf

and the accompanying notes for those boxes:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1003753/SA108-Notes-2021_English.pdf

Jeremy535897

Box 9 of SA108 is where to record the gain already reported, and box 10 records the tax already paid. The gain on the property has to be calculated as per normal (boxes 3 to 8). See:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974132/SA108_English_Form_2021.pdf

She needs to file an amended return.

ChilliBob

Thanks both that's really useful. Do you reckon she'd just need to put in boxes 9 and 10? Or do you think the questions 3-8 would need to be done too? - I'm not sure if she has the calculation still from the tax accountant guy.

[Deleted User]

ChilliBob said:

Thanks both that's really useful. Do you reckon she'd just need to put in boxes 9 and 10? Or do you think the questions 3-8 would need to be done too? - I'm not sure if she has the calculation still from the tax accountant guy.

You need to fill in the whole form - it is a return of all income and gains! You only need to put in the figures - no need for calculations! The accountant should have given you a copy.

ChilliBob

Ah okay, in which case this would be my stab, with a couple of questions.. 

3. 1  (1 house sold)
4. House sale price (should this be the total sale, or the 1/3rd which would have been hers? I guess the 3rd)
5. Solicitors, Estate Agents etc - a few k or something (I can read the notes)
6. The gain from the sale - again, should this be 1/3rd or all of it?
7.  0 - no lossses
8. Leave blank
9. The same figure as 6 minus any costs from 5
10. The tax she paid using the realtime thing -  the same as box 12
11. The same figure as box 9
12. What my Mum paid already about a year ago - same as box 10
13.  0 (or leave blank)

Jeremy535897

Use her share, not the total. That applies to sale proceeds (box 4), and applies to box 5, which should include her share of the solicitors fees and any other costs of sale, plus the original cost of the property including solicitors costs and stamp duty paid on acquisition, plus any improvements, which all need to be added together. 11, 12 and 13 are for non-UK properties or carried interest and should therefore be left blank (I am assuming the property is UK based).

ChilliBob

Thanks, that's interesting, I had thought 11 and 12 were for using the 30 days thing which I thought was the 'real time' side of it? (Which I realise now typing it does sound a tad contradictory!) 

Jeremy535897

No, the return your mother did originally was a "Capital Gains Tax UK Property Disposal return" as described in box 9. You get to the net gain in box 6, and then box 9 deducts the gain already declared on the 30 day return (that's why box 9 has a minus in front of it), which if that is the only gain, should be the same figure as box 6.