Day 13: Capital Gains Tax Reporting - Essential Updates for Your Self-Assessment

With just 13 days until the self-assessment deadline, understanding your Capital Gains Tax (CGT) reporting obligations is crucial. Recent changes to reporting requirements and thresholds make this year's considerations particularly important.

Annual Exemption Threshold Changes

The CGT annual exemption threshold has been reduced to £6,000 for the 2023/24 tax year. This significant change means more gains may be taxable, making accurate reporting even more critical as the deadline approaches.

Property Disposal Reporting

For UK residential property disposals:

• Report and pay CGT within 60 days of completion
• Include the gain on your self-assessment return
• Reconcile any payments already made through the property reporting service

Business Asset Disposal Relief

Previously known as Entrepreneurs' Relief, this valuable relief offers a reduced 10% CGT rate on qualifying disposals up to a lifetime limit of £1 million. Key qualifying conditions include:

• Minimum 2-year ownership period
• 5% minimum shareholding for company disposals
• Active involvement in the business

Calculating Your CGT

Tax rates vary depending on your income and the asset type:

• Basic rate taxpayers: 10% on most assets, 18% on residential property
• Higher rate taxpayers: 20% on most assets, 28% on residential property
• Different rates may apply to specific assets or qualifying reliefs

Loss Utilization Strategies

With the deadline approaching, consider these loss-management strategies:

• Offset current year losses against gains
• Carry forward unused losses from previous years
• Consider crystallizing losses to offset against gains
• Document all loss claims thoroughly

Essential Record Keeping

Maintain detailed records of:

• Purchase and sale prices
• Improvement costs that can be added to your base cost
• Dates of acquisition and disposal
• Supporting documentation for any reliefs claimed

Common CGT Pitfalls

Avoid these frequent reporting mistakes:

• Missing the 60-day property disposal reporting deadline
• Incorrect calculation of acquisition costs
• Overlooking available reliefs
• Insufficient record keeping

Need Urgent CGT Assistance?

With the self-assessment deadline less than two weeks away, ensuring accurate CGT reporting is vital. Our team at MCC Partners can help you navigate these complex requirements and optimize your tax position. Contact us today at 01474 619 990 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for expert CGT guidance.