CGT Service explained
Taxpayers are being reminded that they can use HMRC’s real-time service to report capital gains outside of self-assessment.
Those who have disposed of assets and want to report and pay tax on their gains have the option to use the real-time Capital Gains Tax (CGT) service. This is especially useful for people who do not typically submit a self-assessment tax return, as it negates the need to sign up and file a self-assessment purely to report the gain. Individuals who do file a self-assessment can also use the service, but will still need to report the gain on the SA100 form.
Who can use the real-time CGT service?
The real-time service can be used by UK residents only. It can only be used by taxpayers themselves; not by agents acting on their behalf. The following types of disposals can be reported:
- Non-UK residential property, commercial property or land
- Shares that are not in ISAs or Personal Equity Plans (PEPs)
- Assets such as paintings, jewellery, antiques etc.
It’s important to note that the service cannot be used to report gains on UK residential property, chargeable event gains for life insurance, or foreign tax credit relief for overseas property.
How to access the service
HMRC’s real-time CGT service can be accessed by signing in with your existing government gateway user ID and password. If you don’t have one of these, you can obtain one with proof of ID such as a UK passport or driving licence.
You will be asked to provide information about the disposal and attach your calculations of the gain. For this you will need the original cost or acquisition price, a record of the costs incurred to buy and sell the asset, and details of the proceeds you received on the sale. Once this has been reported, you’ll receive a letter or email containing a payment reference number. HMRC will then confirm the amount of tax you have to pay and provide details on how to make payment.
The deadline for submissions for gains made in 2024-25 is 31 December 2025. Payment must be made by 31 January 2026.
Property disposals
Residential property disposals are reported under a separate service, which allows for agents to report on your behalf. With the sale of property, gains must be reported within 60 days of completion of the sale. Again, if you do not habitually file a self-assessment return, there is no need to do so.
How can an accountant help?
While an accountant can’t use the real-time CGT service on your behalf, they can help with the calculations. Working out your gains may be more complex than you think, since there could be reliefs that you are entitled to. You will also need to consider your Income Tax band, as this will determine what rate of CGT you’ll pay.
An accountant can guide you through the process, ensuring you submit the correct information and calculations to HMRC. Contact a reputable firm today to find out more.
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