How can I manage Capital Gains Tax (CGT) using GoSimpleTax or Coconut?
Managing Capital Gains Tax (CGT) can be streamlined using digital tax software like GoSimpleTax. This guide provides an overview of their capabilities, step-by-step instructions for common tasks, and solutions for handling software limitations and real-time transactions.
Overview of Capabilities
GoSimpleTax: Allows you to complete and file the SA108 Capital Gains pages as part of your annual Self Assessment return. However, standalone CGT returns (e.g., for property sales within 60 days) must be submitted via HMRC’s website.
Step-by-Step Guides for Common Tasks
1. Adding the SA108 Capital Gains Page
In GoSimpleTax open your tax return.
Click the "+ New Page" button on the left sidebar.
Select the Capital Gains (SA108) page and complete the required sections.
2. Recording Property Sales and CGT Paid
Enter the disposal details, including sale proceeds, purchase costs, and other allowable costs.
Indicate if a real-time transaction (60-day CGT report) was made and enter the amount of CGT already paid.
3. Handling Multiple Disposals
GoSimpleTax allows up to 13 individual disposals on the SA108 page.
For more than 13 disposals: - Combine sales and purchase figures into single totals. - Enter these totals in the relevant tabs. - Add a note in the Additional Information box explaining the totals. - Optionally, attach a PDF of detailed calculations.
4. Recording Capital Losses
Enter current-year capital losses in Box 27 of the SA108 form.
To carry losses forward, make an entry in Box 47.
For share sales, enter the purchase price and associated costs under the Purchase tab, and sale proceeds under the Sale tab. Losses are automatically calculated when purchase costs exceed sale proceeds.
Handling Software Limitations
Standalone CGT Returns: GoSimpleTax cannot submit standalone CGT returns for property sales within 60 days. Use HMRC’s website for this purpose.
Non-Resident Transactions: For non-residents, select the option for a real-time transaction when recording disposals and complete the subsequent fields to reflect previously reported gains and payments.
Real-Time Transactions and HMRC Requirements
Report property disposals to HMRC within 60 days of completion and pay any CGT due via the GOV.UK service.
In GoSimpleTax, acknowledge real-time transactions by answering “Yes” to the relevant question and entering the amount of CGT already paid.
FAQs
Does GoSimpleTax have a CGT calculator?
Yes. Add the Capital Gains Tax page by clicking "+ New Page" on the left sidebar, then enter your CGT details. The software will calculate the CGT due.
How do I verify my entries?
Download a copy of your tax return from the Report page to review your entries.
Can I use Coconut for CGT submissions?
Yes, Coconut supports the SA108 Capital Gains page as part of your Self Assessment return. By following these guidelines, you can effectively manage your Capital Gains Tax obligations using GoSimpleTax or Coconut.