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CGT overpayments on property

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HMRC has issued new guidance (para 3.2.3) that covers the situation where a taxpayer has paid more CGT on their property return than is found to be due on completion of their self-assessment return. For 2020/21, the guidance notes that advisers will need to contact HMRC to request repayment.

The ATT reports that practitioners had reported difficulties in obtaining refunds for clients and has asked whether an automated system could be put in place for 2021/22 returns.

The guidance (para 3.2.4) also covers the situation where a taxpayer is ready to file their 2020/21 tax return but has so far been unable to pay CGT on the property return because the necessary payment reference has not been issued. The guidance says that ‘the self assessment return should be completed to reflect the CGT that will be charged via the CGT on UK property account, and a note made in box 54 of the SA108 to advise that the charge reference has not yet been allocated’.

The guidance also covers the equivalent position for trust and estate returns.

Issue: 1560
Categories: News