- Working out your capital gain or loss - the basics
- How to report a capital gain
- What to do if you've made a loss
- Record keeping and Capital Gains Tax
How to report a capital gain
If you haven't received a tax return and have Capital Gains Tax to pay, you need to contact HM Revenue & Customs (HMRC). If you already complete a Self Assessment tax return, you may need some additional Capital Gains Tax pages.
On this page:
- Do you have Capital Gains Tax to pay?
- Completing your tax return
- Filing your tax return online
- Sending in a paper tax return
- Records you need to keep
- How to report a loss
- Key deadlines
Do you have Capital Gains Tax to pay?
Before you do anything else, you need to work out if you have Capital Gains Tax to pay (see the guide on ‘Working out your capital gain or loss’ below).
If you do, the way you tell HMRC differs depending on whether or not you already complete a Self Assessment tax return.
Working out your capital gain or loss - the basics
If you normally complete a Self Assessment tax return
If you're already a Self Assessment taxpayer, you should automatically receive a tax return - or a letter telling you to file online. You’ll need this - and some additional Capital Gains Tax pages - to tell HMRC that you have tax to pay (see more about this below).
If you don't automatically receive a tax return or a letter and have tax to pay, you must write and tell your Tax Office before 5 October after the end of the tax year. You may have to pay a penalty if you don't tell HMRC in time.
If you don't normally complete a tax return
If you haven't received a tax return or a letter telling you to file a tax return online, then you need to write and tell HMRC that you have Capital Gains Tax to pay.
You need to write to your Tax Office (or your local office if you don't have a Tax Office) by 5 October after the end of the tax year or you may have to pay a penalty.
You must give HMRC as much information as possible about the gains and losses made and the tax due. They'll then decide whether you need to complete a Self Assessment tax return.
You can find out more about the forms you'll need and how to file your tax return online or on paper in the sections below. If you want to file online, you'll need to register first.
Register for the Self Assessment online service
Read about the advantages of filing online
Completing your tax return
In addition to your tax return, you'll need some additional Capital Gains Tax pages if you have gains to report - but not all gains need to be reported.
Gains you don't need to report
You don't need to report gains on assets that aren't liable to Capital Gains Tax - eg gains on private cars, shares in ISAs and, in most cases, your main home.
You also don't need to report your gains if all of the following conditions are met:
- your total gains (before you deduct any losses) are equal to or lower than the annual tax-free allowance (£9,600 for 2008-09 for individuals)
- your total ‘disposal proceeds’ - usually the amount you receive when you sell or dispose of an asset - are no more than four times the tax-free allowance (ie no more than £38,400 for individuals in 2008-09)
- you're resident and domiciled in the UK (usually this means that you live here and your permanent home is here, but see the link below for more on 'residency', 'domicile' and taxes)
Find out if your asset's liable to Capital Gains Tax
More about Capital Gains Tax rates and tax-free allowances
Download guidance about ‘residency’, ‘domicile’ and UK taxes (PDF 753K)
Gains trustees don't need to report
For most trustees the amounts are slightly different. Trustees don't need to complete the additional Capital Gains Tax pages of their 2008-09 tax return if both of the following apply:
- the total gains (before deducting losses) are equal to or lower than the annual tax-free allowance for most trustees (£4,800 for 2008-09)
- the total ‘disposal proceeds’ - usually the amount received when the asset is sold or disposed of - are no more than £38,400
More about Capital Gains Tax rates and tax-free allowances
Gains you do need to report
If your gains or disposal proceeds are more than the amounts shown above, you need to report your capital gains to HMRC whether or not Capital Gains Tax is due.
There are different forms for individuals and for trustees. You can find out more about how you get the forms in the sections on filing your tax return online and filing it on paper below.
As an individual, you'll use:
- form SA100 - Self Assessment tax return
- form SA108 - the additional Capital Gains Tax pages
- SA108 Notes - notes to help you complete the Capital Gains Tax pages
If you've already been asked to complete form SA200 (a shorter version of the tax return), you'll still use form SA108 to report your capital gains.
Trustees will use:
- form SA900 - Trust and Estates tax return
- form SA905 - the additional Capital Gains Tax pages
- SA905 notes - notes to help you complete the Capital Gains Tax pages
Find out more about reporting capital gains on a trust
Filing your tax return online
Getting the forms
If you’ve filed an online tax return before - or have registered to file online - you’ll normally receive a letter (called the 'Notice to File') in April just after the end of the tax year, telling you to do the tax return online.
You don't need to ask for any additional Capital Gains Tax pages - you can tailor your online tax return to add the pages yourself.
Deadlines for filing online
If you choose to file your tax return online, and receive your letter (the Notice to File) before 1 November, the deadline to file is the following 31 January.
So for a 2008-09 return, the deadline would be 31 January 2010. This is later than if you choose to complete a paper return.
If you receive a Notice to File on or after 1 November, the deadline to file is three months after the date the Notice to File was issued.
Sending in a paper tax return
Getting the forms
If you completed a paper tax return last year - you’ll normally receive a tax return in April just after the end of the tax year. So you'll normally receive a tax return in April 2009 for the 2008-09 tax year.
You won't get the additional Capital Gains Tax pages (form SA108) automatically. You can download them or get them from the HMRC Orderline.
Get form SA108 Capital Gains Summary from the HMRC website
Order a paper form SA108 Capital Gains Summary from the HMRC Orderline
Deadlines for filing on paper
If you’ve decided to file a paper return instead of filing online, and received your tax return before 1 August, the deadline to file is the following 31 October.
So for a 2008-09 return, the deadline would be 31 October 2009. This is three months earlier than if you file online.
If you received your tax return on or after 1 August, the deadline to file is three months after the date the tax return was issued.
Records you need to keep
When you send in your tax return, you’ll need to attach calculations that show how you've worked out your capital gains. You should keep a copy of these calculations.
You should also keep other records - such as records showing your costs when you buy, sell or improve an asset.
See what records to use and keep for Capital Gains Tax
How to report a loss
You must also tell HMRC about losses if you want to deduct them from your gains. There’s a specific way to do this, as well as time limits for reporting and using losses.
Find out how to report and use losses
Key deadlines
Don’t miss these dates or you may have to pay a penalty, interest or a surcharge on top of the tax you owe.
- 5 October 2009 - tell HMRC if you think you need to pay Capital Gains Tax but haven't been asked to complete a 2008-09 tax return
- 31 October 2009 - send in your completed paper 2008-09 tax return
- 31 January 2010 - file your online 2008-09 tax return
- 31 January 2010 - pay your tax due for 2008-09
Find out more about Self Assessment deadlines and penalties
More useful links
Is your asset liable to Capital Gains Tax?
Get the forms you need for Capital Gains Tax
