HMRC sends two versions according to the time taxpayers can amend their tax returns. For those who are within the deadline, they can simply use the government online service, whilst those who are late must write to HMRC using the details provided in the ‘prompt’ letter.
Taxpayers must evaluate their tax returns and do the necessary actions as soon as possible, as they are only given 60 days within receiving the letter to amend their tax returns. If they believe they do not have any income from shares, they will only need to write an explanation to HMRC and provide some evidence; no need to make any further settlements on their returns.
The CGT allowance for the 2022/23 tax year is set at £6,000. If their income from disposing shares exceeds this amount, taxpayers must disclose their income to HMRC and pay their CGT dues. If they have not done so, they must amend their tax return and pay the outstanding amount.
Non-compliance may lead to a penalty or tax investigation. If you think you owe CGT, amend your returns right away! Legend Financial is here to assist. Subscribe to our newsletter today to remain updated about your tax obligations. You can also call our experts anytime to help with your tax affairs.
References
HMRC prompts disclosure of CGT liability on sale of shares. (14 February 2024). Retrieved from ICAEW:
https://www.icaew.com/insights/tax-news/2024/feb-2024/hmrc-prompts-disclosure-of-cgt-liability-on-sale-of-shares
How to Make a Capital Gains Disclosure to HMRC in the UK? (5 January 2024). Retrieved from Pro Tax Accountant:
https://www.protaxaccountant.co.uk/post/capital-gains-disclosure
HMRC prompts disclosure of CGT liability on sale of shares. (14 February 2024). Retrieved from ICAEW:
https://www.icaew.com/insights/tax-news/2024/feb-2024/hmrc-prompts-disclosure-of-cgt-liability-on-sale-of-shares
post/capital-gains-disclosure
