News

2024/25 Capital Gains Tax Changes Cause Tax Return Errors

07 - 08 - 2025

Mid-year Capital Gains tax changes have led to errors on taxpayers' 2024/25 Self Assessment Tax Returns. 

The Capital Gains Tax rates changed mid tax year in 2024/25 for asset disposals with the exception of residential property sales. In some cases taxpayer are using incorrect tax rates for disposals made on or after 30 October 2024.

HMRC are writing to taxpayers, who have declared a disposal made on or after 30 October 2024 on their 2024/25 self assessment tax return, where an error appears to have been made. The letter sent will be one of the following dependent on the circumstances:

1.      Letter 1 – the tax return includes an adjustment but it appears to be incorrect;

2.      Letter 2 – the tax return does not include an adjustment and an incorrect rate of capital gains tax appears to have been used.

Both letters ask the tax payer to take action within 30 days of the letter.

Please do not hesitate to contact us for advice on 01244 625 500 or contactus@foremansllp.com if you do receive one of these letters or need help with any disposals made during the 2024/25 tax year.