CGT changes
On 30 October 2024, the Chancellor announced in-year changes to the rates that apply to capital gains arising on assets other than residential property such as shares, land or cryptoassets. The basic CGT rate increased from 10% to 18%, and the higher CGT rate from 20% to 24%, with effect from Budget Day.
Although we have had in-year changes to CGT rates before, this one came much later in the tax year than previous changes, meaning that HMRC had already finished updating the 2024/25 SA100 return and was not able to go back and redesign it. Accordingly, unrepresented taxpayers who have disposals taxable at the new rates will be asked to use an HMRC calculator to calculate and report an “adjustment figure” in box 51 of the SA108 to get to the right CGT position for the year. Agents will (hopefully) be able to rely on their software to complete this box automatically.
https://www.gov.uk/tax-sell-property/work-out-your-gain
Trust and estates
For trustees and personal representatives, a new adjustment box will be added to the SA905 and a similar calculator will be provided to help taxpayers calculate the necessary figure.
However, some trust and estate advisers may already be experiencing practical issues with the changes. It’s not uncommon to file a tax return early, before the tax year has even ended, when a client has died, an estate has been wound up or a trust has closed. This can help to bring the affairs of the individual, estate or trust to conclusion more quickly. Generally, a paper version of the previous year’s return is used, with amendments written on the face of it.
As there is no adjustment box on the current SA900 return, HMRC has asked trusts and estates that have non-residential CGT disposals after 30 October 2024 not to file early, but to wait until the 2024/25 SA900 return is published in April to ensure that the correct rate of CGT is applied.