CG-APP18-256 - “Report and pay the tax” section of the return submitted through the CGT on UK Property Account: Amendments
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2.5.6 Amendments - changes to a submitted estimates etc
2.5.7 Amendments – provisional claims and finalising them
2.5.8. Amendments – to correct errors or omissions in submitted returns
2.5.9 CGT on UK Property Account for multiple returns in a tax year
2.5.6 Amendments - changes to a submitted estimates etc
Users can access previously submitted returns from the CGT on UK property account home page, by selecting to They are then presented with the details previously submitted and can select at the bottom of the screen to make amendments.
The legislation at Para 15 (1) Schedule 2 Finance Act 2019 under the subheading of sets out the treatment for the following scenarios where changes to a submitted return can be made.
If at any time after the completion of the disposal -
- it becomes reasonable to expect that, by reference to the person's residence, a provision of TCGA 1992 will apply,
(b) it becomes reasonable to conclude that a provision of TCGA 1992 conferring a relief applies in relation to the disposal,
(c) matters relevant to the application of section 1I of TCGA 1992 become known, or it becomes reasonable to make a different estimate of those matters, where an estimate of those matters was used in the return, or
(d) the value of anything, or of any amount to be apportioned to anything, becomes known where an estimate was used in the return.
Example a): A person has left the country and isn’t fully certain if he will be UK resident or not under the statutory residence test as a conclusion on this point is not made until later.
Example b): A person realises that a relief is likely to be due and so wishes to amend their return.
Example c): A person makes a large gift- aid payment which affects the amount of gain charged at the 18% rate
Example d): At the time of the original return a person hadn’t agreed with their co-owner the proportion of expenditure each of them would claim, and now this proportion is known.
Where an amendment under the circumstances listed is made, the actual disposal is ignored in determining the amount of CGT notionally chargeable as at the filing date for the amendment return.
Where a user amends the return they previously submitted under these circumstances, the person may (but need not) assume that
- there is an additional disposal requiring a property disposal return,
- this additional disposal completed at the later time the circumstances allowing amendment applied, and
- all other aspects of this additional disposal are a replica of the actual disposal.
This has the effect of the notionally chargeable CGT being determined from the date which one of the circumstances allowing amendment applied. As such if the amount of the CGT notionally chargeable increased as a result of the amendment, there would be no late payment interest due as the additional disposal is treated as having completion date at the later time.
Example 1: Mrs W reports a gain on a residential property disposal. As part of the return, she is unable to provide the precise amount of her gross income for the tax year as she is self-employed and it is still early in the year, so she makes a reasonable estimate of her expected gross income using the previous year’s figures. As her income is neither so high as to know she would fall within the higher rate of 24% nor so low as to know she will be chargeable at 18%, the estimate will affect the amount of CGT due for the return and so she ticks the estimates box. The point at which Mrs W can make an amendment depends on her circumstances.
If part way through the tax year, Mrs W realises a new opportunity to expand her self-employment business which results in an expected material increase in her estimated gross income for the year, then she can amend her return because the original estimate is no longer reasonable.
Example 2: If Mrs U filed a return for a property disposal a number of months ago. She has recently made a large gift-aid donation and the rates at which her gain would be charged have changed. She can file an amendment which can be treated as a further return under para15 allowing her to recalculate the amount of CGT notionally chargeable.
2.5.7 Amendments – provisional claims and finalising them
Where a CGT on UK Property return is made in year, it may become reasonable to conclude that a provision of TCGA 1992 conferring a relief applies in relation to the disposal. This may mean that when the in-year return is filed a claim has only been made on a provisional basis, when it becomes possible to finalise the claim this could be done via an amendment to a CGT on UK Property return or alternatively included in their Self Assessment return for the year.
Example. Mr F believes they will qualify for gift holdover relief for part of their gain, but no formal claim is made at the point of completing the CGT on UK Property return. Later during the year, as an amendment to the CGT on UK Property return claim form HS295 is filed to formalise the claim (see CG66889). This can be done as an amendment to the in year return. Depending on the taxpayer’s other circumstances it may mean a Self Assessment return is not required for this year.
2.5.8. Amendments – to correct errors or omissions in submitted returns
Generally, amendments under Para 19 will be made if there was an error or omission in the earlier return. For example, this may occur where the original return was not estimated in any way, and it later becomes apparent that other allowable expenditure had not been included.
Para 19 Schedule 2 Finance Act 2019 sets out that amendments to the property return are only permitted so far as they could have been included when the return was originally delivered, i.e. by reference to events that had already occurred at that point.
Amendments cannot be made to the property return at any time on or after:
- the date on which the person has submitted their Self Assessment return taking account of the disposal
or
- the date by which the person has by notice been required to submit a Self Assessment return.
When the Self Assessment return is submitted, it should include the final figures for the year, giving effect to any other changes that might have otherwise warranted an amendment to the property return.
Certain events, that could not have been included in the original Property disposal return, such as losses arising later in the tax year, should be included in the Self Assessment return.
Example: An individual makes multiple disposals during the year, in April, August and December 2024, the possible options for these disposals are as follows.
Example scenario:
Date |
Type of asset |
Gain or Loss? |
Include in a CGT on UK property return? |
Include in SA return? |
Notes |
April 2024 disposal |
Shares |
Loss |
Yes – see notes |
Yes. |
If there is a property disposal later in the year, this loss can be brought into account. |
April 20204 disposal |
Shares |
Gain |
No |
Yes |
|
August 2024 disposal |
Residential property |
Gain |
Yes |
Yes |
|
August 2024 disposal |
Residential property |
Loss |
No – see notes |
Yes |
There is no requirement for a UK resident to complete the UK property return for a residential property disposal where there is no CGT notionally chargeable |
December 2024 disposal |
Shares |
Loss |
No – see * below. |
Yes |
see * below. |
December 2024 disposal |
Shares |
Gain |
No |
Yes |
*If a further UK property disposal is made later in the year, for instance with a completion in February 2025, when the CGT notionally chargeable is calculated, the loss on the disposal of shares from December 2024 can then be brought into account.
In practice, HMRC may not issue a Self Assessment return where a property disposals return has been submitted. In these cases, to get relief for losses arising later in the tax year, an individual can request and submit a Self Assessment return.
Where the person has not been brought within the Self Assessment return process, they have until the first anniversary of the 31 January following the end of the tax year within which the disposal was made to make an amendment. For further guidance on notification and use of losses see CG15800.
If a person has made other capital gains in the year and are not already required to file a Self Assessment return for the year they should request and file a Self Assessment return for the year.
2.5.9 CGT on UK Property Account for multiple returns in a tax year.
Where an individual has already reported a disposal earlier in the same tax year through the CGT on UK Property Account, the questions posed to the user will largely be the same as described above for the section with some differences in the section of the return.
The section gathers details relating to the specific disposal being reported.
The section, for a disposal which is not the first one in the tax year, will ask for information required to calculate the amount of CGT due on all the relevant property disposals this account relates to, for the year to date.
Care should be taken when entering details to ensure the result calculated by the system matches the person’s own calculations for this year to date position.
Example calculation of a second property disposal – provide details section of the return.
Suppose the example calculation given in section 2.2 of this guidance is the first disposal in the year and a second property disposal is made, a couple of months later, within the same tax year.
The UK resident person is required to complete another online property disposal return. The person has sold a residential property of which they had owned 100% of. The property sold for £380,000, and the total solicitor and estate agent fees for the disposal were £4000. The contract exchange occurred on 27 August 2024 and the completion date was 24 September 2024.
The calculation carried out by the system begins in a similar way based on the information entered within the section.
| Property disposal amount | £380,000 |
| Disposal costs | - £4,000 |
| Property disposal amount less costs | = £376,000 |
The person had acquired the property for £160,000 and had incurred solicitor fees, surveyor fees and SDLT totalling £5000. There were no improvements made.
| Property acquisition amount | £160,000 |
| Improvement costs | + £0 |
| Acquisition costs | + £5000 |
| Property Acquisition amount plus costs | = £165,000 |
| Disposal amount less costs (i) | £376,000 |
| Property acquisition amount plus costs (ii) | - £165,000 |
| Initial gain or loss | = £211,000 |
Example continued: The person is not entitled to any relief on this property.
| Private Residence Relief | £0 |
| Other reliefs | £0 |
| Total reliefs | £0 |
| Initial gain or loss | £211,000 |
| Total reliefs | - £0 |
| Gain or loss after reliefs | = £211,000 |
The and the is calculated using the information entered in the section of the return, see 2.4.
The user is presented with the gain that the system has calculated for the details entered into the return. The user has the option to . The user is asked the question:
If the user agrees with the workings, they are told to enter the gain that the system has calculated and displays for them.
However, if they do not agree with these workings they can enter:
- A different amount,
- Or that they made a loss,
- Or that they made no gain or loss.
Example calculation of a second property disposal – report and pay the tax section of the return
The section of the return, then looks for details to be provided to calculate the year to date position. This is a section where additional care should be taken and understanding the workings of the calculation should help highlight the need to enter year to date values even where they have been entered previously.
The user should enter the total amount of allowable losses in the year that affect the CGT liability on UK property related disposals. If a loss was made on this disposal being reported in this return, then the user should include this amount in the total.
In the earlier example we saw that the person had a loss of £4,500 from the disposal of shares which occurred prior to the completion date for the property disposal being reported in the first return. They have therefore already entered this amount into the system, however if they would like to use this loss against their overall year to date CGT liability on UK property-related disposals, they will have to re-enter the amount when asked
If the person has capital losses from an earlier year which have been notified to HMRC and these have not already been used, the user can bring those losses in here. If the user has entered their previous year losses when submitting a return of CGT on UK property earlier in the same tax year, they must ensure they enter the figure they would like to use again so that the system correctly calculates their year-to-date position based on the multiple property disposals reported.
In the earlier example which is continued for the scenario of a second property disposal below, the amount of previous years losses used was £7,560.
How much of your CGT Annual Exempt Amount (AEA) do you want to use?
The user should enter the amount of AEA they wish to use for their property disposals for the whole of the tax year. The user is prompted to enter the whole amount they wish to use even if they have included it in any previous returns for the same tax year.
| Property 1 gain after reliefs | £76,550 |
| Property 2 gain after reliefs | +£211,000 |
| All gains after reliefs | =£287,550 |
| All gains after reliefs | £387,550 |
| Losses from this tax year | -£4,500 |
| Gains after losses from this tax year | =£283,050 |
| Gains after losses from this tax year | £283,050 |
| Amount of Annual exempt amount used | -£3000 |
| Year position | =280,050 |
| Year position | 280,050 |
| Losses from previous tax years | -£7,560 |
| Overall gain | £272,490 |
The user is then asked if they made a net gain on the property disposals that they are paying tax on in the tax year. They should expand the option to and are then told to enter the calculated figure if they agree with the workings, or to enter a different amount if they disagree.
The user is then asked the questions to establish the amount of the gain chargeable at each rate as described in section 2.5.4. for the example here, the same figures as the original example calculation in 2.2. are used.
| Gross annual income | £36,600 |
| Amount of personal allowance used | £12,570 |
| Taxable income | £24,030 |
| UK threshold for basic rate tax | £37,700 |
| Taxable income | - £24,030 |
| UK threshold for basic rate tax less taxable income | =£13,670 |
To work out the amount to be charged at the basic rate of CGT we took the lower of these amounts: UK threshold for basic rate tax less taxable income, £13,670; or Taxable gain, £272,490.
| Taxable gain | £272,490 |
| Amount of the taxable gain to be taxed at basic rate | -£13,670 |
| Amount of the taxable gain to be taxed at higher rate | =£258,820 |
| Amount to be taxed at the basic rate | £13,670 |
| Basic rate | x18% |
| Amount of tax due at basic rate | £2460.60 |
| Amount of net gain to be charged at the higher rate | £258,820 |
| Higher rate | x24% |
| Amount of tax due at the higher rate | =£62,116.80 |
| Amount of tax due at basic rate | £2,460.60 |
| Amount of tax due at the higher rate | +£62,116.80 |
| Latest year to date liability | =£64,577.40 |
The user is presented with the workings of the overall liability so far this tax year, and if they agree they are asked to enter the amount calculated, or they can enter a different amount.
They are then shown a simple calculation, of how much CGT is due now based on the details. This is based on the year to date position, less any amount that had been due for previous returns.
| Overall liability so far this tax year | £64,577.40 |
| Liability for previous returns | - £13,937.40 |
| CGT now Due | =£50,640.00 |