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Capital Gains Tax refunds - how to receive a timely refund

Article ID: 3165
Last updated: 17 May, 2021

Why does TaxCalc not provide information on Capital Gains Tax (CGT) paid?

The reporting process for real time Capital Gains is something that software developers have not been given access to by HMRC so we cannot provide a link to this information via the Tax Return Production process in TaxCalc. This is something that is likely to change with the introduction of MTD for Income Tax but we currently do not know timescales for when this will be made available to us.

In addition, once the information is entered on the return, the CGT payable on the tax summary (SA302) cannot be negative for HMRC validation purposes, so if there should be a refund of CGT paid, the resulting CGT payable will show as zero and therefore a refund will not be offset against income tax payable.

How to ensure a timely refund from HMRC

When you have reported and paid Capital Gains Tax (CGT) throughout the tax year, you will have created a CGT account with HMRC. When you submit a self assessment tax return, the resulting CGT calculation will eventually update your CGT account but as they are are separate HMRC systems, there will be a process involved  to initiate the update which may cause a delay in the refund being processed.

We know from talking to other customers that HMRC advise the following in order to expedite the process:

1) Before you file your self assessment return (this is important), login to your HMRC CGT account and modify it to reflect your now calculated (via TaxCalc) total gross earnings for the year.

2) HMRC then calculates the total amount of CGT that you owe (this should agree with the amount that TaxCalc has already calculated). Enter this amount in your HMRC CGT account and finish answering their questions and then logout. 

3) Now complete your self assessment, leaving the original CGT entries as they are. The SA302 will not show any refund due as explained above.

4) File your self assessment

HMRC state that a refund should be received within 30 days of the CGT account being updated.

Article ID: 3165
Last updated: 17 May, 2021
Revision: 5
Views: 254
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Also listed in
folder Tax Return Production -> SA100 Individual Return