HELP !!! I did not realise I had to register my captial gains tax within 30 days

[just wondering]

I'd let the accountant sort it out - their work will drop off after Monday's deadline.
Lots of these costs sound like they should have been in your 20/21 assessment, and it's possible that it might be sensible to correct that at the same time.

Thank you, I shall definitely discuss that point with regards to those items been used on the 2020/2021 assessment.

[jpkeates]

I'd let the accountant sort it out - their work will drop off after Monday's deadline.
Lots of these costs sound like they should have been in your 20/21 assessment, and it's possible that it might be sensible to correct that at the same time.

[just wondering]

I'd suggest that you sit down with an accountant and a) take their advice on what can be claimed and what can't and b) let them work the issue through with HMRC.

Items like "a new bathroom" always worry me, because it normally doesn't mean a whole new room, it means an updated, but existing bathroom, which isn't likely to be a capital expense, but may be partially claimable if it was a significant change.
A new consumer unit isn't likely to be capital.

Hi, Thank you for your reply, the bathroom, after the tenant had moved out was a complete mess, smashed tiles, leaks going down the walls into the kitchen below...the entire room was stripped, replastered, new bathroom suite, ceiling reskimmed, new materials used on the walls instead of tiles, better fan extractors.

Admittedly it was more like for like, the overall configuration was not changed, the room was not extended

I do have the end report from when the letting agent came in and took pictures showing how the place had been left, the place had become the kind of place that you wiped your feet on the way out...it was a complete sty, the tenant had smoked in the property, the entire place stank, everything had to go, things that I know I cannot claim on for CGC ( I presume) new carpets, fresh decoration etc.

Knowing what I know now about property prices and the current property price hikes, the property was agreed for sale in late October 2020, but it took until the 25th of April 2021 before it was completed...mega stressful....but I maybe could have left the property in complete ruins and put it straight on the market in August 2020 when the tenant moved out, but the price hikes had not really kicked in and the situation suggested do it up and sell it, but if no one buys it, leave it in a suitable condition to rent it back out again...but that is all hindsight etc.

I have managed to make contact with my accountant, she is currently extremely busy with the end of year accounts for many of her clients, I did my 2020/2021 self-assessment last year with her, but she is free next week, so in the meantime, I guess it would be a good idea to dig out and gather all the receipts and make a list of them, costs and get a list for my accountant to discuss with the HMRC in regard to CGT claimable items and also paying the CGT ASAP.

[jpkeates]

I'd suggest that you sit down with an accountant and a) take their advice on what can be claimed and what can't and b) let them work the issue through with HMRC.

Items like "a new bathroom" always worry me, because it normally doesn't mean a whole new room, it means an updated, but existing bathroom, which isn't likely to be a capital expense, but may be partially claimable if it was a significant change.
A new consumer unit isn't likely to be capital.

[just wondering]

There's different levels depending which box you tick as your reason for late filing, they might accept an offer of 19.5% penalty + 2.5% interest , but knock off all your capital expenses and my guess is your total will be less than the £6690 you estimated. Slip it in before the 31st Jan while they're snowed under would be my suggestion 😁

Thank you for your reply, based on my workings out above in my past post, I roughly worked out my fine including interest to be around £589.50, excluding interest would be £434.50. (if I have worked things out correctly)

When you detailed 19.5% penalty, roughly speaking would that mean, 19.5 percent of the £434.50 + 2.5% interest ? making the potential fine £84.72 + 2.5 % interest ?

Or have I got the wrong end of the stick?

[just wondering]

With regard to claiming against capital gains tax for the things from up to 24 years ago that I no longer have receipts for, such as fitting central heating, fees for buying the property (solicitor, survey costs, no stamp duty paid due to been below stamp duty level), I had a large area of the garden patio'ed and a new wall built to divide off part of the garden.

Although I did pay for all those things, I presume it would be madness to include them as costs, as I cannot prove how much I paid and when I paid, but the sticking point been that they are purchases from between 24 and 14 years ago, I guess I would no longer be required to have kept the receipts for the work carried out....plus at the time, I had no intention of renting out the property some 13 or so years later.

I do have receipts for more recent things, new bathroom, re-tiled the roof, new electric consumer box, fitting costs.

[Section20z]

Hi, thank you all for your very helpful replies.

I shall definitely use the voluntary disclosure form, any idea how much do they reduce the fine by?

There's different levels depending which box you tick as your reason for late filing, they might accept an offer of 19.5% penalty + 2.5% interest , but knock off all your capital expenses and my guess is your total will be less than the £6690 you estimated. Slip it in before the 31st Jan while they're snowed under would be my suggestion 😁

[just wondering]

If you do the annual tax return online before 31 Jan ( now allowed to 28 Feb 2022) , report your capital gain £49K less those refurb costs before sale.

Hi, thank you, I have already paid for 2020 / 2021, the property sold in the next tax year on April the 25th 2021, so I believe the capital gain would be for the year 2021 to 2022 (even though I was ment to pay the CGT 30 days after completing on April the 25th 2021) ... Which I can file from April the 6th 2022, I am self assessment

I am hoping I'm not wrong, as I guess I will have made another mistake.

[just wondering]

Personally I would register and file for CGT now (the limit is now 60 days) so they have your calculations, and then file the voluntary disclosure form with your offer of penalty. If you do it without prompting then the penalties are less , and are all explained on the website.

Hi, thank you all for your very helpful replies.

I shall definitely use the voluntary disclosure form, any idea how much do they reduce the fine by?

[Gordon999]

If you do the annual tax return online before 31 Jan ( now allowed to 28 Feb 2022) , report your capital gain £49K less those refurb costs before sale.

[theartfullodger]

For the benefit of anyone selling since 27th October 2021 it's now 60 days...
https://www.gov.uk/capital-gains-tax...ital-gains-tax

If you sold property in the UK on or after 6 April 2020


You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within:

• 60 days of selling the property if the completion date was on or after 27 October 2021
• 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021

You may have to pay interest and a penalty if you do not report and pay on time.

Hopefully selling (completing)this month or next,

[Section20z]

Personally I would register and file for CGT now (the limit is now 60 days) so they have your calculations, and then file the voluntary disclosure form with your offer of penalty. If you do it without prompting then the penalties are less , and are all explained on the website.

[just wondering]

Okay, I have been burning the midnight oil, based on the property been sold April 25th 2021, I had 30 days to notify HMRC and pay the CGT, so currently I am around 9 months late, based on the links below to the HMRC website that detail, the fine and that I would need to pay interest also.

So capital gain £6690

Penalties
£100 for up to six late
beyond 6 months additional 5 % tax of the CGT outstanding £6690 = £334.50
Then the interest rate at 2.6 percent (I presume of the total amount including penalities) interest charged around £155 (based on 10 months of interest)

so my fine should come to around £589.50

I presume when the form is filled out online for the capital gains tax, the fine will be calculated at the same time ? Or will I be sent a separate bill?

Info below used to roughly calculate the potential penalty amount

HMRC penalty interest rate of 2.6 percent

https://www.gov.uk/government/public...ptember%202009

Late charges

https://www.gov.uk/guidance/capital-...20is%20greater

If you miss the deadline by:

up to 6 months, you will get a penalty of £100

more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater

more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater

[JK0]

Hi Thank you for your reply, please could you give me a few more clues, as to how I would not have to pay any CGT ?

I'd look back at old bank statements and cheque stubs to find the costs of all the jobs you've done over the years. I think they must be more than £37k. If there is no CGT to pay, I'd have thought there should be no penalty.

[just wondering]

Does anyone know how much of a late fee I am likely to pay ? With me been around 10 months late?