HM Revenue & Customs (HMRC) has recently introduced a new Capital Gains Tax (CGT) adjustment calculator for the 2024-2025 tax year. This tool is designed to help individuals, trustees, and personal representatives accurately calculate their CGT adjustments for disposals of assets made on or after 30 October 2024. Here’s a brief overview of the key features and how to use the calculator:
Key Features
Updated Rates: The main rates of CGT for disposals of assets have changed, although the rates for residential property and carried interest remain the same.
Self Assessment Adjustments: The Self Assessment tax return will not automatically calculate the new rates, so users need to manually adjust their CGT calculations using this tool.
Eligibility: The calculator is intended for those who have made disposals of assets on or after 30 October 2024, are completing a Self Assessment tax return for the 2024-2025 tax year, and have overall capital gains above the annual exempt amount.
How to Use the Calculator
Gather Information: Before using the calculator, ensure you have the following details:
Date of disposal
Amount of gains
Taxable income
Details of any capital losses
Information on any pension schemes or Gift Aid payments
Check Rules: Review the anti-forestalling rules and the rules on losses to ensure accurate calculations.
Calculate: Input the required information into the calculator to determine your CGT adjustment.
This new tool aims to simplify the process of calculating CGT adjustments, ensuring that taxpayers can accurately report their gains and comply with the latest tax regulations. For more detailed guidance, visit the official HMRC page.
This adjustment can be complex, and it's essential to calculate it correctly to prevent any errors in your tax return. Don't hesitate to contact our tax team if you require further help with your tax return or calculating your capital gain.
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