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Personal Tax: Underpayment OR Overpayment of Capital Gains already paid Tax - How?

Article ID
personal-tax-underpayment-or-overpayment-of-capital-gains-tax-how
Article Name
Personal Tax: Underpayment OR Overpayment of Capital Gains already paid Tax - How?
Created Date
21st July 2021
Product
Problem
IRIS Personal Tax- 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 on computation or tax return. Or the opposite you expected a underpayment to show but not listed anywhere.
Resolution

2021 and before

The tax on capital gains already charged will only reduce any gain to nil (it will normally show on the Capital Gains comp and it wont show if it is a loss), but it will not generate an ‘overpayment or repayment’, and this is in accordance with the Tax Calculation as provided by HMRC, rather than a restriction added in the IRIS PT software.

In the event capital gains tax has been paid which results in a repayment or a underpayment, this would need to be claimed directly with the HMRC and cannot be included in a SA100 tax return. You can add a note under Reliefs | Misc | Additional info | SA100.

You can also contact HMRC support and ask to speak to a senior member of staff as they have more knowledge of this subject.

2022 onwards

HMRC have updated their Tax Calculation for 2022 to now allow an ‘overpayment’ of CG Tax to be claimed via the Tax Return – do check the tax comp if this shows a value. This is only applicable for Tax Years 2022 onward therefore will be included in the IRIS version update 22.1 release. This wont apply if you are on 21.4.0 or earlier.

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