Capital Gains Tax Reporting and Record Keeping

Capital Gains Tax Reporting

January 04, 2022

Record keeping is not something you would really feel up to doing, but as with anything else pertaining to accounts, it is an activity that simply has to be done whether you like it or not. Considering the limited amount of free time business owners and individuals have for such miscellaneous tasks, it is no surprise that business accounting is now seen as the preferred medium to get rid of this hassle. For instance, even after you collect the record and file the Self-assessment, the same would have to be kept for over a year and even longer if the return was filed late. And for business owners the records would have to be kept for five years after the deadline.

What are the records that you will need

The records needs would include the bills, receipts and invoices that have the amount and date reflected on them consisting of the following:

  1. 1 - What was paid by you for the asset
  2. 2 - Information of the other costs like professional fees stamp duty, improvement costs or anything in relation to evaluating the market value
  3. 3 - Whatever was received for the asset like payments or compensation for the same

It is possible that you have lost the records or they were lost or even stolen in which case you might not be able to replace them. But they need to be recreated if possible. In this case, these figures would be considered to be provisional or estimated. An accountant can help you make things easier by giving you the required advice or guide you through other possible avenues you might not have realised exist.

The reporting element

Another element that is very difficult for business owners and individuals alike is meeting the tax deadlines and filing on time. In order to make a submission you need your Government Gateway id handy If you do not have this your accountant can create the same or you could do so yourself. However, if you have a good accounting services provider you would be able to work out the best and most tax efficient deal for yourself. The reporting deadlines too vary and you may end up having to pay interest and a penalty amount if you fail to report or pay on time. For instance, within a period of 60 days of selling you would need to make the report of the same if the completion date was set on or even after the 27th of October 2021 but it differs if the completion date was before that. Thus, sometimes trusting the experts is indeed a better option than doing things by oneself.