Hoiw Long should an Appel to HMRC take over CGT house sale?
Discussion
Briefly, we sold a second home in November last year, and as we both do Self Assessment I was expecting to declare that sale on my SA. However Whilst browsing I came across an article that said that any CGT liability on sale of second houses now has to be reported to HMRC within 60 days of the sale. We immediately went through that process, (and paid the CGT) but the submission was 2 days late.
We each received an automatic penalty of £100 for the late submission 2 days later.
The appeals process was outlined in the paperwork and we duly appealed to HMRC for the penalty, expecting a response within 40 days which is what it said on the paperwork. We submitted them in separate envelopes and We did pay the penalties at that time too, just in case.
Up to now it has been over 100 days since we submitted the appeals.
I know HMRC are very busy but how long can I expect such an appeal to take? Is there a means of finding out whether the appeals have been considered or do we just have to sit it out?
We each received an automatic penalty of £100 for the late submission 2 days later.
The appeals process was outlined in the paperwork and we duly appealed to HMRC for the penalty, expecting a response within 40 days which is what it said on the paperwork. We submitted them in separate envelopes and We did pay the penalties at that time too, just in case.
Up to now it has been over 100 days since we submitted the appeals.
I know HMRC are very busy but how long can I expect such an appeal to take? Is there a means of finding out whether the appeals have been considered or do we just have to sit it out?
The Leaper said:
Odd that you have lodged an appeal and also state that you missed the deadline, so why appeal?
R.
This is exactly correct, HMRC will reject the appeal and you can appeal to the FTT, honestly if you made enough to pay CGT then chalk it down to a learning fee.R.
If your return was 1 min late, it's late and the bar for reasonable excuses is both and limited.
Interested in this.
Sold a house in August 23 and despite an increase in value, when we deducted costs of buying selling and improvement costs, it worked out there would be nothing to pay.
We usually do our self assessments in November, but I went on, my Tax record the other week for another reason, and spotted that there's a record of the sales increase, showing in one section.
I guess that when I do my SA and state that there is nothing to pay that it will all be lovely and smooth.
Right ?
Sold a house in August 23 and despite an increase in value, when we deducted costs of buying selling and improvement costs, it worked out there would be nothing to pay.
We usually do our self assessments in November, but I went on, my Tax record the other week for another reason, and spotted that there's a record of the sales increase, showing in one section.
I guess that when I do my SA and state that there is nothing to pay that it will all be lovely and smooth.
Right ?
Eric Mc said:
Ignorance of tax law is never valid grounds of appeal against a tax related penalty.
If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
I sold half my share of an inherited property, and it went at market rate give or take, which was pretty much the same rate that was declared by the solicitor at the time of death, so there was no profit. Was I supposed to declare something to HMRC to tell them I sold it? If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
Eric Mc said:
Ignorance of tax law is never valid grounds of appeal against a tax related penalty.
Maybe.In 2008 I formed a limited company and registered for PAYE etc as I had a plan (which didn't come to fruition until 2011
)As I was doing nothing with the company at the time I thought no more about it. What I forgot was that I should have been doing nil returns for the PAYE.
Fast forward several months and I got a charge of £600 for six failures to do the return. I wrote back and pointed out that if they'd sent me the first penalty sooner I'd only owe £100 as I would have straight away realised my error & done the returns. Amazingly they immediately reduced the penalty from £600 to £100.
So flush was I with my success I wrote back thanking them for the help. I then gave the sob story about new business, hard times, poorly cat etc & again amazingly they cancelled the final £100.
bmwmike said:
Eric Mc said:
Ignorance of tax law is never valid grounds of appeal against a tax related penalty.
If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
I sold half my share of an inherited property, and it went at market rate give or take, which was pretty much the same rate that was declared by the solicitor at the time of death, so there was no profit. Was I supposed to declare something to HMRC to tell them I sold it? If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
Mr Dendrite said:
No, only if the house went up in value between the date of death (value declared for probate) and date of sale to go over the CGT limit. Had the same but the house was sold as part of the estate, it did go up and we used the estates CGT allowance and paid a small amount of tax.
Phew!! Thanks. Solicitor was pretty good in fairness and hadn't mentioned anything, so I was pretty sure i'd done everything right. Thanks for confirming though.Not CGT related but... Last year I asked HMRC to transfer my VAT account from Sale Trader to Limited company. Eight month later they told me they couldn't do it and recommended I setup a new VAT account. In the meantime they messed up my old VAT account and I couldn't make any submissions.
They completely messed up my old VAT account and managed to mess up the new one two. I ended up having to lodge a complaint and finally, a year after I initially started the process they fixed my new account and I was able to submit VAT returns for the periods between July 23 and Jan 24. They fixed my VAT account in the middle of March, and then proceeded to give me penalty points and a fine because my submissions were late (due 7th March). Whilst my returns are now up to date, they still say I owe nearly £5k (and £4k in fees/interest) for an auto-generated return that covers a period that I've already submitted and paid for.
I've had to raise yet another complaint asking them to remove all of the late payment charges, interest and penalty points as they had agreed in my initial complaint that these wouldn't be applied.
I have literally, never in my life, dealt with an organisation as inept as HMRC.
When I initially submitted my VAT transfer, their website said it would take 3 weeks. Despite loads of chasing things up, it took 8 month before they actioned anything. You could be waiting a while for your appeal.
They completely messed up my old VAT account and managed to mess up the new one two. I ended up having to lodge a complaint and finally, a year after I initially started the process they fixed my new account and I was able to submit VAT returns for the periods between July 23 and Jan 24. They fixed my VAT account in the middle of March, and then proceeded to give me penalty points and a fine because my submissions were late (due 7th March). Whilst my returns are now up to date, they still say I owe nearly £5k (and £4k in fees/interest) for an auto-generated return that covers a period that I've already submitted and paid for.
I've had to raise yet another complaint asking them to remove all of the late payment charges, interest and penalty points as they had agreed in my initial complaint that these wouldn't be applied.
I have literally, never in my life, dealt with an organisation as inept as HMRC.
When I initially submitted my VAT transfer, their website said it would take 3 weeks. Despite loads of chasing things up, it took 8 month before they actioned anything. You could be waiting a while for your appeal.
Eric Mc said:
Ignorance of tax law is never valid grounds of appeal against a tax related penalty.
If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
My accountant told in writing that as I did not owe anything, I could just wait and do it on my SA. If you sell a residential property that is not your main residence, you have 60 days to file and pay. There are no exceptions.
Was he giving me incorrect advice ?
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