Personal Tax- ‘Residential Property’ Capital gain tax 18/24/28%
Article ID
personal-tax-residential-property-capital-gain-18-24-28
Article Name
Personal Tax- ‘Residential Property’ Capital gain tax 18/24/28%
Created Date
11th August 2022
Problem
IRIS Personal Tax: Property Capital gain is giving 18/28% showing instead of 10/20%. New 2024/25 rates of 18/24%?
Resolution
1.Load the client in PT and select relevant year
2. Dividends, Capital assets, Assets, Open the asset, Then click on ‘Land and property’. If already selected, then click on the magnifying glass:
3. If you want the 18/24/28% (read the HMRC rules on the % rate on disposal date) calc then ‘tick’ the Residential property at the bottom.
4. If you want the 10/20%(read the HMRC rules on the % rate on disposal date) calc then ‘untick’ the Residential property at the bottom. You cannot claim the other tax rate if ticked Residential.
5. If you have already done one of the options above but it still calculates at the other %. Open the asset and reverse the tick/untick. Run the CG Comp next and then go back to asset and tick or untick it again and now run the CG Comp again.
2024/2025 New HMRC 18/24 for Residential Property. The IRIS Development team have confirmed that the new HMRC 18/24% rates is planned for future release version 25.1.0 in April 2025. Why not release earlier? HMRC may have stated the changes in early 2023/2024 however we are dependent upon the HMRC calculation for 2024/2025 to be sent to our Development team and we only received these instructions late 2024 and we will need time to design it into PT.
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