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PTP TR - Claiming back an overpayment of Capital Gains Tax

Article ID
kba-03787
Article Name
PTP TR - Claiming back an overpayment of Capital Gains Tax
Created Date
13th May 2021
Product
Problem
Where an overpayment of CGT has arisen as a result of the disposal of a property, this is not being refunded via the Self Assessment tax calculation.
Resolution

Property disposals are reported within 30 days of the disposal via a separate HMRC system https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start/report-pay-capital-gains-tax-uk-property?_ga=2.240606790.415839895.1604918429-1258266042.1576784658#howTo.  However, during the completion of the Self Assessment return, it may come to light that other disposals/losses during the tax year may mean there was an overpayment of CGT at the time of the property disposal. 

The SA tax calculation will reduce any CGT tax liability to nil but currently does not cater for overpayments.  On Page TC1, box 5 reports Capital Gains Tax due (which cannot be negative) but there is no equivalent box for Capital Gains Tax overpaid.  The overpayment must be reclaimed outside of SA, through the other system.  We suggest raising with this with your professional body as they are likely to have more information on this and any future plans HMRC may have.

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