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September 2025 | Taxpayers warned about incorrect CGT rates in self-assessment returns

HMRC is sending letters to self-assessment taxpayers who may have used the wrong Capital Gains Tax rate on disposals made after 30 October 2024 in their 2024/25 tax return.

The main rates of CGT on the disposal of assets, other than residential property and carried interest, rose from 10% to 18% for basic rate taxpayers, and 20% to 24% for higher rate taxpayers. But there is a danger they may have not paid the right CGT as the return may not have automatically calculated the CGT liability correctly.

This means they would need to adjust their return, according to the ICAEW. You can check if the amount you paid is correct by using the online calculator at Gov.uk.

WHAT LETTERS ARE BEING SENT?

There are two letters that HMRC is sending to the taxpayers HMRC feels may have made this mistake. The first letter is for those people who included an adjustment which appeared to be incorrect. The second letter is for those where the return didn't include the adjustment, and an incorrect rate of CGT has been used.

Depending on which letter is received, HMRC is asking people to use its online tool to check the correct adjustment, and amend the return if it is incorrect. Or if the figure on the return is correct, then people are being asked to let HMRC know that by contacting it using the information in the letter. Either way, action needs to be taken within 30 days of the date of the letter.

If you are paying CGT late, then HMRC will be charging interest on it. The letter will also tell you what to do if you miss the 30-day deadline given in the letter for responding.

LET US HELP YOU

If you're not sure whether you have paid the right amount of CGT via your self-assessment return for 2024/25, then please get in touch with us on 01709 327 215 or email info@branagans.co.uk and we will do what we can to help you.

01709 327 215

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