Concerns have been raised about the likelihood of taxpayers making Capital Gains Tax (CGT) errors in their next tax returns.
Capital Gains Tax changes
In last October’s Budget, the Chancellor announced increases in the main rates of CGT, with changes coming into effect that very morning – an unusual occurrence that didn’t give businesses time to prepare.
The rate increased from 10% to 18% for gains falling in the basic rate, and from 20% to 24% for gains falling in the higher and additional rate bands.
The announcement also came after HMRC’s online filing service for tax returns had been finalised.
This means that calculations generated as part of completing the CGT section of a tax return will be inaccurate for affected disposals that occurred on or after October 30, 2024.
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CGT mistakes ‘inevitable’
The ATT believes that it is ‘inevitable’ that there will be mistakes made on tax returns, especially for taxpayers who missed the guidance on these changes and fill out their own tax returns, instead of being represented by an agent.
Taxpayers who have CGT to report are being urged to remember to include the correct disposal date for all CGT transactions in their return.
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