In the Autumn Budget 2024, the government announced that the main rate of CGT for trustees/PRs would increase from 20% to 24% with effect for disposals taking place on or after 30 October 2024. The main rate of CGT applies to disposals of assets other than residential property and carried interest.
Tax returns may be submitted to HMRC for a tax year once that tax year has ended (ie, after 5 April 2025 for the tax year 2024/25). However, a trustee/PR may wish to submit a tax return before the end of the tax year to bring the affairs of an estate or trust to an end. Such returns are referred to as ‘in-year’ returns. An in-year return is submitted on paper using the tax return form for the previous tax year (ie, 2023/24).
HMRC has advised ICAEW that, for trustees/PRs reporting main rate disposals on or after 30 October 2024, a manual workaround will be required in the 2024/25 tax return to ensure the correct rate of tax is used in the return. This will involve using an adjustment box in the supplementary pages to the return (SA905) to account for the in-year difference in tax. HMRC will provide an adjustment tool to help trustees/PRs calculate the correct adjustment figure.
As the 2023/24 tax return does not have this workaround, HMRC says that it will not be possible for trustees/PRs to file an in-year return for 2024/25 where an asset other than residential property and carried interest was disposed of on or after 30 October 2024. In this case, trustees/PRs will need to wait until the 2024/25 tax return becomes available in April 2025. HMRC says that any returns affected by this issue that have already been sent will be returned to trustees/PRs.
HMRC will continue to accept in-year returns where:
- there are no disposals to report; or
- there are no disposals after 29 October 2024 to report; or
- the only disposals on or after 30 October to report are of residential property or carried interest.
Changes were also announced at the Autumn Budget 2024 to the main rates of CGT for individuals disposing of assets on or after 30 October 2024. HMRC has not yet said how this will be dealt with in the tax return for 2024/25.
Further information
- HMRC policy paper: CGT – rates of tax
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