For individuals if a 30 day CGT return is filed there is no need to file a Tax Return as well.
As far as I can tell for a trust it will have to register with the TRS and then for a CGT return, the trust will not need to file a Tax Return as well, similar to an individual. Do members here agree?
I am a bit concerned that the TRS usually arranges for a UTR to be issued when tax is due, but I wonder if there is now an option for a CGT registration only? The HMRC guidance on the website suggests to deal with a 30 day CGT return a UTR or a Trust Registration number is required, I don’t think I have seen a trust registration number before.
If anyone has experience of this and can share information of the process that would be handy.
Whiting & Partners
I have recently gone through this palaver with a client. In my case the trust already had a UTR, but had not been registered on the TRS because it had had no tax liabilities in recent years and HMRC had stopped issuing tax returns.
My trustee client could not create an online CGT account without first registering the trust on the TRS. I assume the trust reference referred to on the HMRC website is the 15 digit reference you get when you register the trust on the TRS, beginning with 5 letters. I must confess that I had not previously understood the importance of this reference, but you get something similar when creating a property account for reporting CGT.
In my case we have completed a tax return anyway as the trust has now ended, and we wanted to report that to HMRC, but I wouldn’t be surprised if HMRC automatically issue a tax return for the year if, when registering the trust, you state that you have a liability to CGT for the year.
I hope this helps.
I have not done this yet but I was doing an update to a trust’s TRS and saw that HMRC now have ‘UK property account for a client’ to which I can request authrorisation with this link:
either select trust or individual for example
then we get
Select an option
Maintain a trust or an estate
Manage a trust’s Capital Gains Tax on UK property account
What is your client’s Capital Gains Tax on UK property account number?
This will help us match their details against information we hold.
Capital Gains Tax on UK property account number
This is 15 characters, for example XYCGTP123456789. Your client received this when they created their account.
It seems to me that as long as your client has a govt gateway account, you can then connect your authorisation (for agent services account) to their govt gateway account using this UK property account #.
Individuals and trusts can create their govt gateway account from the link at this page
It seems that it will accept your info as long as you have national insurance (for individuals). For trusts I don’t know how this will work in practice.
Due to coronavirus (COVID-19), you will not get a late filing penalty for any transactions completed on or after 6 April 2020 to 1 July 2020 and reported up to 31 July 2020.
Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 calendar days.
“For individuals if a 30 day CGT return is filed there is no need to file a Tax Return as well.”
As I understand it, this is not correct.
If a client needs to report and and pay capital gains tax on a property disposal via the new 30 day reporting service, this is because they have a liability to pay. The reporting of the disposal and payment of the tax within 30 days does not then absolve the client from also reporting the disposal on their self-assessment tax return to be filed by 31 January. Any tax paid under the 30 day reporting will be taken into account for the liability due by 31 January.
In terms of a trust having to report a gain, should it not already have a UTR to be able to make the 30 day report (which again is only required if there is tax to pay) then it will need to register on the TRS to obtain one. The trustees will also still have to report the disposal under the usual self-assessment rules.
Stevens & Bolton LLP
I will have to see what happens when I deal with the one I have.
If a return is issued I will attempt to get it cancelled on the basis only a CGT return is required, although I have not seen this in “black and white” for trusts it appears to apply as it does for individuals.
Whiting & Partners
UK residential property gains need to be reported online and CGT payable within 30 days of completion (FA 2019 Sch 2 Parts 1 and 2).
If a self assessment return needs to be filed any residential property gains must also be included in the assessment.
No notice of changeability to HMRC is required under TMA 1970 s 7 due solely to any chargeable gain arising on disposal of residential property (subject to time limits; FA 2019 Sch 2 para 18).
Clearly, a self assessment requires filing where a notice under TMA 1970 s 8 has been issued for completion.
I meant a tax return is not required if there is no other reason to complete one. HMRC’s own briefing states:
If you are reporting a ‘one off’ disposal and you have no other reason to complete the SA return you will not need to register for Self-Assessment. You no longer need to register for self-assessment solely for the purpose of reporting a residential property disposal.
My question was if this relates to trusts too, seems it does.
Whiting & Partners
Further to my post above, the trust will need the submission reference generated at the time of submitting the (first) TRS.
Last week I did CGT return for 3 foreign trusts and for all three I had to submit a full TRS so that I can get this reference.
HMRC has not made it easy for trusts to file within the 30 days. The main struggle is to collate data for the trust for TRS which needs full trust, settlor, trustee and all beneficairies details. All this takes time.