CGT and LBTT

PoGee

[Deleted User] said:

Keep_pedalling said:

PoGee said:

Thanks for replies. I do a tax return each year for rental income. Will it be ok to do the CGT calculation within the same tax return? There was no CGT tax to pay when my siblings and I sold our mother's property. I did the calculation within the same tax return that year. There will be some tax to pay with the property I'm selling at the moment so wondered if the procedure would be different.

No, CGT on residential property needs to be paid within 60 days of the sale, so you can’t wait until it’s time to do this financial year’s return.

https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Yes - by way of clarification on my earlier post - it must also be included on the tax return which, of course, will be for 2025/26.

I will do my 24/25 tax return this July. Do I not include the CGT calculation in this one? If I don't, how do I declare the calculation? There may be a minimal amount of tax to pay, depending on what the valuation is.

sheramber

If you sell after 5April 2025 then the sale happens in 25/26 not. In 24/25. 

[Deleted User]

PoGee said:

[Deleted User] said:

Keep_pedalling said:

PoGee said:

Thanks for replies. I do a tax return each year for rental income. Will it be ok to do the CGT calculation within the same tax return? There was no CGT tax to pay when my siblings and I sold our mother's property. I did the calculation within the same tax return that year. There will be some tax to pay with the property I'm selling at the moment so wondered if the procedure would be different.

No, CGT on residential property needs to be paid within 60 days of the sale, so you can’t wait until it’s time to do this financial year’s return.

https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Yes - by way of clarification on my earlier post - it must also be included on the tax return which, of course, will be for 2025/26.

I will do my 24/25 tax return this July. Do I not include the CGT calculation in this one? If I don't, how do I declare the calculation? There may be a minimal amount of tax to pay, depending on what the valuation is.

First this step:

https://www.gov.uk/report-and-pay-your-capital-gains-tax

Then - declare on return for 2025/26

PoGee

sheramber said:

If you sell after 5April 2025 then the sale happens in 25/26 not. In 24/25. 

Apologies for sounding confused. If, once I've done the calculation and take off the tax free amount + legal fees + structural report fee + ASD (LBTT) etc, I find that there is nothing to pay, do I still contact HMRC within 60 days of the sale? If I do, is it a separate form as it shouldn't go on this year's (24/25) tax return? 

PoGee

Thanks for the HMRC link Nomunnofun1. I know what I'm doing now.

PoGee

I went onto HMRC's CGT calculation pages. If I pop in the higher value of £85000 ( purchase price 76000), and deduct allowable deductions, there is a small loss of £300. I can't claim that back as selling to connected person, as advised on this platform. Do I even need to contact HMRC at all? As I've made a loss?

Bookworm225

PoGee said:

I went onto HMRC's CGT calculation pages. If I pop in the higher value of £85000 ( purchase price 76000), and deduct allowable deductions, there is a small loss of £300. I can't claim that back as selling to connected person, as advised on this platform. Do I even need to contact HMRC at all? As I've made a loss?

I suggest you read the links several of us have already given you 

in addition this should help you 
Capital Gains Tax: what you pay it on, rates and allowances: If you make a loss - GOV.UK
 

[Deleted User]

PoGee said:

I went onto HMRC's CGT calculation pages. If I pop in the higher value of £85000 ( purchase price 76000), and deduct allowable deductions, there is a small loss of £300. I can't claim that back as selling to connected person, as advised on this platform. Do I even need to contact HMRC at all? As I've made a loss?

Do you normally complete a tax return? If so, you must include the disposal whether it’s a resultant loss or not. 

If not - you don’t need to do anything (unless you wish to carry forward the loss against future gains)