HMRC has sent out the wrong details of capital gains tax (CGT) allowance to thousands of taxpayers who reported CGT on their annual self assessment forms
The problem occurred when HMRC sent out the wrong tax notes to taxpayers with the previous year’s CGT exemption, mistakenly using the 2017/18 allowance.
Taxpayers were told that their allowance was £11,300, rather than the correct 2018/19 figure of £11,700.
The mistake was in the notes rather than the tax return itself and only about 600 customers were affected as they complete a Capital Gains Schedule. The notes have already been corrected online and taxpayers do not need to take any action.
The current CGT rates are 28% on gains from residential property, 20% on other chargeable assets.
The forms were sent to around 350,000 taxpayers, according to reports in The Telegraph.