Tx notes fa22 Final

June 2023 to March 2024 exams
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2.3. Capital gains tax 
(a)
Capital gains tax is mostly payable on 31 January after tax year – 31 January 2024 for 2022/23.
(b)
A payment on account however, along with a return to HMRC, must be made within 30 days of 
the disposal of a residential property - payments on account do not apply to any other asset 
disposals. - see Chapter 12, section 7, page 79.
(c)
Under self assessment, gains on other assets must be reported to HMRC within 6 months of 
the end of the tax year in which the asset is sold. (ie by 5 October).
3. Notification of chargeability 
An individual who receives a source of income subject to income tax or capital gains tax must notify 
HMRC by 5th October following the end of the tax year the source arose.
Failure to notify HMRC will result in a standard penalty based on a percentage of tax unpaid on 31 
January following the end of the tax year - See “Standard Penalties for Errors” in Rates and 
Allowances information provided in the exam.
4. Self assessment tax return 
(a)
Individuals complete their own tax return. The first part details income and capital gains for the 
tax year, the second part shows the calculation of the income tax liability.
(b)
The taxpayer has the choice of filing a paper return or filing electronically online. The dates by 
which a return must be filed depends on the method used.
(c)
All completed and signed paper returns must be filed by 31 October following the end of the 
tax year.
(d)
All online electronic returns must be filed by 31 January following the end of the tax year (the 
filing date).
(e)
The relevant dates for a 2022/23 return are therefore 31 October 2023 (paper returns) and 31 
January 2024 (electronic returns).
(f)
The 31 October date will also be the deadline for a taxpayer to complete a paper return if they 
wish HMRC to calculate the tax liability on their behalf. For tax returns filed online a tax 
calculation is automatically provided as part of the online filing service.
(g)
HMRC can amend a taxpayer self assessment to correct obvious errors or mistakes within nine 
months of receiving the return.
(h)
The taxpayer can give notice to an o
ffi
cer to amend his tax return within 12 months of the 31 
January filing date regardless of whether the return is paper based or filed electronically.