CGT – I “want” to pay, but how?

CGT – I “want” to pay, but how?

16:11 PM, 11th June 2020, About 4 years ago 3

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I seem to be caught between two systems. I sold a property in February 2020 and made a small loss. I sold another in May 2020 and made a gain which is not completely cancelled out by the previous loss plus my allowance.

I need to pay some CGT but with the recent change in reporting and payment requirements, I cannot work out how!

The HMRC CGT calculator asks “In the 2020/21 tax year, what was your income?” but as we are not at the end of 20/21 tax year yet, how can I possibly know? This very much depends on whether tenants pay all their rent (difficult to predict even in non Covid times) and whether I have any void periods.

I have phoned HMRC and someone should phone me back by June 16th……..but given the run around of departments I was given this morning, I am not hopeful that the call will come from someone who knows the answer.

I thought I read somewhere that the requirement to pay within 31 days had been extended but cannot now find that info.

I am really hoping that someone on here might know the answers to this.

Many thanks


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Pippa Watson

13:22 PM, 12th June 2020, About 4 years ago

In the same boat, I know I will be LRT but have not been in previous years. Haven't read about the delay they have offered, doesn't seem to appear when I have started the process, only have another 13 days to complete it. Would be keen to hear how it has worked for anyone else.

Martin McD

17:18 PM, 12th June 2020, About 4 years ago

I had a similar issue, but fortunately got through to a very help guy at HMRC. He told me to enter my best guess for income for the year, and any adjustments would be made when I submit my 2020-2021 tax return in Jan 2022.
If you expect to pay income tax at 40%, I think the estimate does not need to be that accurate - you will pay CGT all at 28%.
If you expect to pay income tax at both 20% and 40%, I'll leave you to work out whether to estimate higher or lower.
Following the question on "estimated income", is a question asking if any of the figures are estimates ! Clearly they will be. The HMRC guy I spoke to said this really meant "were any of the Capital Gains figures estimates".
I did find the extension because of Covid - there is an extra month.
All the above is my personal view as a fellow unqualified landlord.

Dennis Forrest

21:28 PM, 12th June 2020, About 4 years ago

I would suggest that you estimate your income on the low side for 20/21 so that you only pay CGT, on account, at 18%. If your income works out higher than your estimate then just pay them the extra 10% on part or all of the gain in 2022. This is what I intend to do on a property I am currently selling, fingers crossed. It is so early in the tax year I cannot be certain of what my income will be for the whole of the 20-21 tax year.

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