Missed deadline for CGT on shares

[aristotle]

Hi,

In 2010 I made €2600 profit from buying and selling shares but I have missed the deadline for paying the CGT (due in January this year I believe, I just assumed I could do it as part of my 2010 self assesment by Oct 31st using a Form 11E).

I calculate the due tax (25%) as being €2600 less €1270 exemption i.e. €332.50.

What kind of penalities will I face do you think? And am I correct it saying I cannot do this on a Form 11E later in the year?

Thanks

 

[mandelbrot]

Hi,

In 2010 I made €2600 profit from buying and selling shares but I have missed the deadline for paying the CGT (due in January this year I believe, I just assumed I could do it as part of my 2010 self assesment by Oct 31st using a Form 11E).

I calculate the due tax (25%) as being €2600 less €1270 exemption i.e. €332.50.

What kind of penalities will I face do you think? And am I correct it saying I cannot do this on a Form 11E later in the year?

Thanks

This is one of the most commonly misunderstood areas of the tax system, as there are two separate obligations on the taxpayer in relation to CGT:

1. You are obliged to calculate the amount of CGT you owe and PAY it by a certain date (15 December for gains on disposals from Jan-Nov, and 31 January for gains on disposals in December). If you pay late, then you may be liable to interest, from the due date (15 Dec / 31 Jan) up to the date you pay the tax.

2. You are then obliged to submit a return where you declare the amount of CGT due for the year, on or before 31st October of the following year. If you are a person who is required to file a Form 11, then this is where you make the declaration. If you are a PAYE worker, there is a Form CG1 (http://www.google.ie/url?sa=t&sourc...fnAO75cXA&sig2=93T0but88G2F23OqTGPEDg&cad=rja)

If you file the return late, you are liable to a surcharge (5% / 10% depending on how late you are filing), even though you may have paid the tax on time!


In your case, I would just advise you to send in the cheque now / soon, quoting your PPS No., and ask to have it set against CGT 2010. Then return the amount of the gain on your Form 11E. I'd be very surprised if you're charged interest. Even if you are, it'll be all of a tenner!