HMRC’s new calculator to work out the adjustment for self-assessment tax returns for disposals of assets on or after 30 October 2024 where the capital gains tax (CGT) rates changed
The main rates of CGT increased, from a lower rate of 10% and a higher rate of 20%, to 18% and 24% respectively from 30 October 2024. The rate of CGT that applies to trustees and personal representatives also increased from 20% to 24% for disposals made on or after 30 October 2024. The 18% and 24% residential property rates have not changed. Please see our earlier Bulletin.
The self-assessment tax return will not automatically calculate at the new main rates for the 2024/25 tax year. This means that people may need to work out an adjustment to the tax automatically calculated. They can use HMRC’s new adjustment calculator (please see the ‘Calculate now’ link below) to do this.
People can also get help with their tax return from an accountant or tax adviser, if they have one.
People can use the calculator if:
- they have made a disposal of assets on or after the 30 October 2024;
- they are completing a self-assessment tax return for the 2024/25 tax year as an individual, trustee or personal representative;
- their overall capital gains are above their tax-free allowance (known as the annual exempt amount).
If anyone submits their self-assessment tax return using commercial software, they need to check the correct rates are used.
Before starting, it will be necessary to work out the gains and how much tax is owed.
It’s also necessary to check the:
- anti-forestalling rules on page CG10249 of the Capital Gains manual to make sure the correct disposal date is used in the calculator and if a statement is needed with the return;
- rules on losses on page CG14561 of the Capital Gains manual to make sure losses between family members and connected people are offset correctly.
To use the calculator to work out the CGT adjustment figure the following will be needed:
- date of disposal;
- amount of gains;
- taxable income;
- details of any capital losses;
- details of any pension schemes or Gift Aid payments.
Please also see our Bulletin regarding filing in-year trust and estate tax returns.
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