OTS urges reform to capital gains reporting system
The Office for Tax Simplification (OTS) is calling for an overhaul of how capital gains tax (CGT) is reported.
The report is the second of its kind, looking at ways to simplify the practical, technical and administrative issues surrounding CGT as requested by Chancellor Rishi Sunak in July 2020.
Its number one recommendation involves HMRC integrating the three main ways of reporting a capital gain into a new ‘single customer account' to act as a central hub for CGT data, replacing personal tax accounts.
Presently, taxpayers must report a capital gain through a self assessment, a UK property tax return or the capital gains tax service.
Bill Dodwell, tax director at the OTS, commented:
"Integrating CGT into the single customer account is a natural ambition for this vital HMRC programme and would reduce the need for people to fill in a full self-assessment return just because they need to report a capital gain."
The OTS made 13 other recommendations in their report, including extending the UK property tax return deadline from 30 to 60 days and giving separating and divorcing couples more time to transfer assets between themselves without triggering CGT charges.
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