HMRC has issued updated guidance affecting trusts that need to report Capital Gains Tax (CGT) on UK property disposals.
Trusts liable for CGT on UK property must now be registered with the Trust Registration Service (TRS) before they can create a ‘CGT on UK property account’ or submit a paper tax return. This adds an additional compliance step for trustees and advisers handling property transactions.
Where a CGT overpayment arises after submitting a Self-Assessment (SA) return, HMRC will automatically offset the excess against other outstanding SA liabilities. However, if a balance remains after this offset, it will not be refunded automatically. Trustees will need to contact HMRC directly to claim any remaining repayment.
Trustees should ensure that TRS registration is completed in advance of reporting deadlines to avoid delays or administrative complications.
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