Are you aware of HMRC’s Real Time Capital Gains Tax Service? Here’s everything you need to know about this government-run service and how Braceys can help you.
What is HMRC’s RT CGT Service?
HMRC has set up a “Real Time” Capital Gains Tax Service to help individuals report the disposal of certain assets which are subject to CGT. This avoids the need for that individual to register for Self Assessment if they would otherwise not be required to submit a tax return.What can it be used for?
You can use the RT CGT Service to notify HMRC of any gains on shares or personal possessions. There’s an exception, however: you can’t use the service to report gains on UK property – there’s another service available specifically for this.Types of gains you can report
Share gains
The number of UK individuals investing in shares or investment portfolios has increased over the last few years. As a result, there are more individuals who will have gains to report, should they decide to cash in their investment. You may need to pay CGT if you dispose of some or all of your investment at a profit. That includes shares which are not held in an ISA, units in a unit trust and certain types of bonds. It’s worth noting at this point that if you do sell and make a loss, you should keep a record of that loss. Why? Because you may be able to offset it against any future gains.Gains on personal possessions
It’s not just shares and property that attract capital gains tax. For instance, you could be holding onto personal possessions such as jewellery, paintings, antiques or even coins and stamps which have a high market value. If you were to sell any of these possessions for more than £6,000, then you would also have to report any gain made to HMRC.When do I have to tell HMRC by?
For gains which are not related to UK property, you have two options:- Report using HMRC’s RT CGT service by 31st December following the tax year of disposal (so if your gain was on 31st March 2020, this falls in the tax year to 5th April 2020, therefore, you have to report it by 31st December 2020)
- Report via a self-assessment tax return by 31st January following the tax year of disposal