Sage Personal Tax: Capital Gain relief codes

Clients may be able to make an election or claim relief from Capital Gains Tax. How do I enter the relief code onto the return?

2016 and later years

The relief code is automatically determined by the relief(s) chosen under Capital Gains > Disposal > [Name of Disposal] > Reliefs & other information tab

The code used will be shown in brackets next to the name of the relief:

TIP:  If multiple reliefs are selected, the code will show as MUL on the SA108 as per page CGN3 of the return notes. The reliefs will be broken down on the Capital Gains PDF that is automatically attached to your return

 

 

2015 only

A return with a capital gain claim or election will fail validation untill manually populated:

Schedule	Page	Box	Validation Message
SA108	CG 2	22	If a claim or election is made, you must enter one of the 3-letter relief codes on page CGN 3 of HMRC's Capital gains summary notes, and give full details in box 37
SA108	CG 2	22	The value must be a valid CGT relief code of N upper case letters

The validation may refer to boxes 22, 28 or 35 depending on the type of gain you have selected

Once you have validated your return you may also notice that three question marks appear in the box in question. This is to inform you that you must manually complete this box by following the instructions below.

 

You can select the relevant claim in the Disposals data entry form to ensure the capital gain is reduced by the amount of the relevant claim. You will then need to enter the appropriate 3 letter code, (available in Help or HMRC SA108 guidance notes) in the relevant box of the Capital gains summary on a copy of the return.

To copy the return for editing:

• Select the return icon or select "Current working figures" to open up the tax return
• From the list of tasks on the left hand side, select "copy return for editing"

You can now enter the code directly on to the return itself. You should do this as the last stage of your work, and should finalise the copied return and submit to HMRC.

Relief codes

What code should I use?

We can't advise you which code is correct as we don't know the individual circumstances of your client, however a list of codes can be found in the SA108 notes on HMRC's website on page CGN3.

Claim, election or notice	Code
Private Residence Relief where Lettings Relief does not apply	PRR
Private Residence Relief where Lettings Relief applies	LET
Gift Hold-Over Relief	GHO
Rollover Relief	ROR
Employee Shares	ESH
Entrepreneurs' Relief	ERL
Negligible Value Claims	NVC
Social Investment Tax Relief	SIR
Other claims	OTH
If more than 1 code applies	MUL