PTP TR - 6492 rejection for Non-resident clients with excluded income and capital gains

Article ID

kba-03789

Article Name

PTP TR - 6492 rejection for Non-resident clients with excluded income and capital gains

Created Date

13th May 2021

Product

Problem

A 6492 rejection is received on a return for a client with excluded income and capital gains.

Resolution

Where a client is non-resident but has certain types of UK investment income (see https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim1170 for more information) it may be more beneficial for those sources of income to be excluded, or disregarded, as opposed to receiving the Personal Allowance.  The portion of the Basic Rate Band that would otherwise have been utilised against these sources of income is being made available to the CGT calculation within PTP but this ought not to be the case.  PTP is understating the tax due in this scenario.  This issue will be corrected in the Summer release.