CGT Lifetime limit - HMRC briefing
HMRC have shared the following briefing on CGT Lifetime limit:
HMRC have announced that they will be reviewing 2020/21 tax returns for those individuals who, according to HMRC’s information, have exceeded their BADR/ER lifetime allowance of £1million. The gains reported in their 2020/21 returns might have taken those individuals over the limit, thus overclaiming the relief on part of the gain; or that limit may not have been available prior to 2020/21 due to their having exceeded the limit in an earlier year. These individuals will be asked to check their 2020/21 returns, make any appropriate amendments, and inform HMRC accordingly. Those who do not may face having their return being looked into and amended by HMRC. CIOT had made suggestions to HMRC earlier this year concerning the wording of their ‘One to Many’ nudge letter consultation on this subject, many of which have been adopted.