Don’t get caught out by Capital Gains Tax changes, Azets warns

Changes mean two tiers of CGT for 2024/25 tax returns

Taxpayers in Yorkshire are at risk of being fined for incorrect Capital Gains Tax payments because of an issue with HMRC’s software, a tax specialist from the region has warned.

Yorkshire-based Richard Major, national head of private clients at international business advisory group Azets, is urging business owners to review their tax returns for last financial year and double check their numbers.

He said: “HMRC didn’t have a chance to update its software before the Capital Gains Tax change was introduced at the Budget last year.

“As result, anyone who files their tax return directly with them is likely to be at risk of underpaying as their tax calculation will have been made on the old software and won’t reflect the changes that came in on 30^th October last year.”

HMRC can issue penalties for returns which have been incorrectly submitted, with the expected fine potentially as much of 30% of the extra tax owed.

It has launched a new calculator to help taxpayers work out whether they need to make an adjustment to their tax returns and how much that could be.

Richard, who is based in Azets’ Leeds office, said: “To use HMRC’s calculator, you’ll need to have a number of details to hand: the date of disposal, the amount of gains made, taxable income for the tax year, capital losses for the current and previous tax years, and details of any pension or Gift Aid payments for the tax year.

“The results of the calculations will need to be added as an attachment to the 24/25 return. This is due 31 January next year – and while this may seem like a long while away, I’d urge anyone in Yorkshire who is affected by the changes to explore their options now, so they can save time, stress and eliminate the risk of being fined for an accidental underpayment.”

Azets has three offices in Yorkshire, in Leeds, Bradford and York, where it employs 335 people.