Capital Gains Tax returns for trusts and estates

Please see the following information which HMRC have asked us to share:

Capital Gains Tax

At the Autumn Budget 2024, the government announced changes to the rates of Capital Gains Tax (CGT).

Trustees/Personal Representatives (PRs) have previously been able to file in year Self-Assessment Returns (SA905) using the previous tax years form under ‘a collection and management measure’. Due to the in-year change for the 2024-25 tax year only, for customers with disposals on or after 30 October 2024, a manual workaround will be required to ensure the new rate of tax is correctly accounted for in the return. This will involve using an adjustment box which has been added to the SA905 to account for the in-year difference in tax. 

Therefore, use of the 2023/24 tax return for 2024/25 will cause an issue for some customers, as the return does not have the ability to capture the two rates of CGT, so we cannot accept some in year returns.

We can accept:

• 2024/25 in year returns that have UK property disposals only as there is no change to the CGT rate
• any disposals made before 30 October 2024 

We cannot accept:

• any return with multiple main rates of CGT for disposals on or after 30 October until the 2024-25 return is available in April 2025. Returns that have already been sent will be returned to trustees/PRs.

An adjustment tool will be available alongside the updated 2024/25 return to support a trustee/PR to calculate the correct adjustment figure.