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When you report Capital Gains Tax in your Self Assessment tax return, you'll need to keep certain records and documents to help you fill your tax return in and to answer any queries from HM Revenue & Customs (HMRC). You'll also need these records if you make a claim - for example making a claim for losses.
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The records you should keep depend on your circumstances - but it's a good idea to keep any records associated with an asset you've owned.
You should always keep any information that you use to:
This article explains the typical information you'll need if you sell or otherwise dispose of an asset in the 2010-11 tax year.
You usually acquire an asset when you buy it, but you may also have inherited it, received it as a gift or acquired it in some other way.
In all cases you'll need to keep records of the original cost, additional costs associated with acquiring it and sometimes records showing the value of the asset on a specific date.
If you bought the asset after 31 March 1982 you'll need to keep records showing the original cost of the asset - such as receipts for purchase.
If you didn't buy the asset - for example you inherited or were given the asset - you'll need records of the market value (see below).
If you owned the asset on 31 March 1982, you'll need to work out the market value of the asset at 31 March 1982 and use this in your Capital Gains Tax calculations instead of the your actual costs up to that date. You need to keep any records that will help you do this.
There are other times when you need to use the market value of the asset on a specific date in your Capital Gains Tax calculations instead of the cost.
For example, if you dispose of an asset left to you in a will by a relative who died on 2 February 2010, you would use the market value on 2 February 2010 (the date of death) in place of any actual cost in your calculations. (Use the links to the calculation guides below to find out more about when to use the market value.)
If you need help getting a valuation for a specific date, please see the section 'Getting a valuation' below.
If you spent money acquiring the asset - such as fees paid for professional advice, Stamp Duty, conveyance fees, valuation fees or other costs of transfer - and you're deducting these in your Capital Gains Tax calculation, you'll need to keep records of these costs.
How to calculate capital gains on shares
How to calculate capital gains on property
How to calculate capital gains on personal possessions
How to calculate capital gains on business assets
You may be able to deduct some additional costs in your Capital Gains Tax calculation that you've had during the time you've owned the asset. You'll need to keep records of these costs. Some examples are:
If you've spent money improving the value of your asset you may be able to deduct these costs, as long as the improvement is still reflected in the value of the asset when you dispose of it. For example, if you install a swimming pool to add value to your property - and it's still part of the property when you sell or dispose of it - you can deduct the cost of the swimming pool. Maintenance costs, such as decorating, don't count.
If you've spent money proving that you own or have rights over an asset you may be able to deduct this cost.
You usually dispose of an asset when you sell it, but you may also have given it away, exchanged it for another asset, transferred it to someone else or it may have been lost or destroyed. These are all examples of a 'disposal'.
In all cases you'll need to keep records of the 'disposal proceeds' (usually the amount you received), additional costs associated with disposing of it and sometimes records showing the value of the asset on a specific date.
You must keep records of the amount you received when you sold or otherwise disposed of the asset (this may include, for example, a sum received as compensation for a damaged asset).
You'll sometimes need to use the market value of the asset on the date you dispose of it, instead of the amount you received.
For example, if you gave an asset to your child on 5 March 2011, you would use the market value on 5 March 2011 (the date of the gift) instead of any amount received. (Use the links to the calculation guides below to find out more about when to use the market value.)
If you need help getting a valuation for a specific date, please see the section 'Getting a valuation' below.
If you spent money selling or otherwise disposing of the asset - such as legal fees, valuation fees or advertising costs to find a buyer - and you're deducting these in your Capital Gains Tax calculation, you'll need to keep records of these costs.
How to calculate capital gains on shares
How to calculate capital gains on property
How to calculate capital gains on personal possessions
How to calculate capital gains on business assets
Typical documents you should keep - sometimes for a very long time - include:
If you need to use a valuation - for example if you inherited or were given an asset or if you owned the asset on 31 March 1982 - you may decide to seek professional advice or to provide your own valuation. You may find material from websites, the library or the Stock Exchange helpful - but you must keep records of how you arrived at your valuation.
You can ask HMRC to check your valuation. You may do this after you have disposed of the asset and before you send in your tax return. You'll need to complete form CG34 Post Transaction Valuation Check and send it to the address shown on the form. Allow at least two months for HMRC to agree the valuation. If they accept the valuation they will not question it again when you send in your tax return unless there are other relevant facts that you didn't tell them about.
Download form CG34 if you want HMRC to check your valuation of an asset (PDF 44K)
If you file your 2010-11 tax return by the filing date, you should normally keep your records until 31 January 2013 - or until 31 January 2017 if you're self-employed or in a partnership.
You'll need to keep your records for longer if you file your tax return late or HMRC have started a check into your return.
Record keeping for individuals and directors
Self-employed - find out more about records you need to keep
Partners in a business partnership and record keeping
If you lose any records and can't replace them, you must tell HMRC when reporting your gains or losses. You'll have to do your best to recreate the records you need.
When you fill in your tax return you should tell HMRC that the records have been lost or destroyed. You do this by clearly showing on your tax return whether the figures are 'estimated' (you don't know the actual amount) or 'provisional' (you're waiting for more information).
If you use estimated figures, you must tell HMRC if you want these figures to be accepted as the final figures.
If you use provisional figures, you'll need to tell HMRC what the actual figures are as soon as you can.
