I have my first paper CGT Return which unfortunately does not come with any guidance notes. Do forum member think Q2 on p5 “How much of your Personal Allowance do you want to apply?” means personal allowance or CGT annual exempt amount?
I don’t think it’s possible to download the paper form (so I haven’t seen the page to which you refer) but in calculating any chargeable gain it is the annual exempt amount which is relevant, not the personal allowance.
In the first instance it is asking about the CGT annual allowance to establish the quantum of taxable chargeable gain. For individuals there is then a subsequent section about their income and the amount of income tax personal allowance they have in order to establish the rate of CGT they have to pay 18% or 28%? This does not apply for trusts or Estates, which I believe always pay CGT on property at 28%.
I agree with both above comments and have completed a number of these forms already. HMRC have commented about their surprise as to the number of paper forms they are receiving! Anyway, please be prepared for a long wait time following submission. Mine are currently taking about 14 weeks but payment is not due until after reply so there will be no interest or penalties. I usually submit with a covering letter explaining why an online form could not be completed but to date, no arguments have been raised by HMRC.
Lucy Orrow CTA TEP
Lambert Chapman LLP
Yes, correct that it’s not available for download, sadly
And yes, I do realise it should be the CGT allowance that’s meant here but the fact that the words used are “personal allowance” when we are talking about CGT has me wondering why they are asking that question here. I have never seen AE referred to as PA and it’s sloppy drafting by HMRC if they do mean AE
Agreed, the CGT rate here will be 28%, and thank you Lucy for the heads-up on the likely delay! Staggering that HMRC should be surprised at the numbers though!