Self assessment online exclusions - a workaround for exclusion 60 applying to no gain/no loss reporting on CGT pages

HMRC is working on an in year update of self assessment software to remove some of the online filing exclusions for 2016/17. The fix is expected to be put in place in October, although a specific date is not yet available. 

One exclusion, which will not be fixed by this forthcoming update, is number 60. This states that a taxpayer who is required to complete a capital gains page will not be able to do so online if the net gain/loss is nil.

HMRC is now endorsing the following workaround to allow such returns to be filed online:

Where there is no overall gain or loss to enter in

  • both “Gains in the year, before losses” (box 6) and “Losses in the year” (box 7) on the Capital Gains section, it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 7)
  • both “Gains in the year, before losses” (box 17) and “Losses in the year” (box 19) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 19)
  • both “Gains in the year, before losses” (box 26) and “Losses in the year” (box 27) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 27)
  • both “Gains in the year, before losses” (box 34) and “Losses in the year” (box 35) on the Capital Gains section it is permissible for the software to support the entry‎ of £0.01 in “Losses in the year” (box 35).

If this workaround is followed, no additional tax will be due as this figure will be regarded as zero in the tax calculation. Software developers have also been notified of this workaround.

Anonymous