HMRC prompts disclosure of CGT liability on sale of shares.

Have you recently sold some shares and not reported it on your tax return? It happens, but HMRC wants to ensure everyone stays on track with their tax responsibilities. That’s why they’ve initiated a campaign to reach out to individuals who may have missed mentioning share disposals in their tax filings.

In their recent communication, HMRC is simply reminding recipients about potential capital gains tax (CGT) liabilities associated with unreported share disposals. The letter clarifies what constitutes a ‘disposal’ and outlines scenarios where CGT might not apply, such as when gains fall below the annual exempt amount.

For those still within the timeframe to amend their tax return, HMRC provides clear instructions on how to do so via gov.uk. However, if the window for amendments has closed, individuals are advised to correspond with HMRC directly, adhering to the guidelines specified in the letter.

If you firmly believe CGT isn’t applicable to your situation, HMRC encourages you to articulate your reasoning in writing.

It’s worth noting that a response within 60 days of receiving the letter can help avoid potential inquiries or compliance checks from HMRC.

If you are unsure about this, please get in touch and one of our experts would be happy to help.