New CGT reporting tool
Self-assessment returns aren’t set up for the change in capital gains tax (CGT) rates on the government filing system and will require a manual adjustment for 2024/25 to ensure the correct amount is paid. Why is there a problem and can a new online tool help?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
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Forming a partnership to split your income
You’ve been doing some freelance work and what started out as a modest side hustle is now taking off. You’ll need to pay tax on the profits but is it possible to reduce it by splitting the income with your spouse?
At the Autumn Budget 2024, the government announced that the main rates of CGT would increase from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher rate taxpayers. This change took effect immediately on 30 October, and as this was part way through the tax year it has made reporting disposals for 2024/25 more complicated.
Unfortunately, HMRC has confirmed that the self-assessment tax returns will not factor in the increase in rates and an adjustment may be required. In order to assist with this it has launched a calculator. You may need to use the calculator if you sold or gifted assets after 30 October 2024, and the capital gain exceeded your annual exempt amount of £3,000. In order to use the calculator, you should have other relevant information to hand, such as your total taxable income for the year and details of any capital losses. The calculator will work out the adjustment figure that should be reported on your tax return to ensure the amount of tax due is accurate.
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