Durham Tax Alert: Mid-Year CGT Hike Means Extra Care for Local Investors

Labour’s October 2024 Budget increased capital gains tax mid-year, but HMRC software hasn’t caught up. For Durham taxpayers, it’s more important than ever to review disposals and get professional guidance to avoid mistakes.

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The Tax Faculty

1/13/20262 min read

A Practical Headache for HMRC (and Tax Payers)

The October 2024 Budget brought a surprise twist for investors across the North East: capital gains tax rates jumped mid-year, rising to 18% for basic rate taxpayers and 24% for higher rate taxpayers. While this move was intended to prevent last-minute tax planning, it has created a practical headache—especially here in Durham, where many individuals manage a mix of property, shares, and other investments.

The problem? HMRC’s self assessment system doesn’t automatically adjust for mid-year rate changes, leaving a gap that could easily lead to underpayment or errors.

Why Durham Taxpayers Should Pay Attention

Anyone who sold shares, investment funds, crypto, or second homes after 30 October 2024 now faces a manual adjustment to their capital gains tax calculation. The usual automatic calculations in HMRC software will not reflect the new rates, meaning mistakes are easy to make—particularly for those who manage their own filings without professional advice.

Even commercial software may not have fully updated for the mid-year hike. Double-checking your figures with an accountant is now essential, particularly for local investors who may hold property or investments across multiple locations in the North East.

Practical Steps for Durham Investors

Review all asset disposals from 30 October 2024 to 5 April 2025.
Check any calculations performed by software or on your own.
Seek professional guidance if you are unsure about any part of your CGT calculation.
Ensure your self assessment reflects the correct amounts to avoid penalties or interest.

The bottom line: mistakes are easy to make when CGT rates change mid-year. Getting a Durham-based tax professionals, who also have a wealth of accountancy experience, to review your return could save time, stress, and potential fines.

If you’re uncertain about your capital gains tax for 2024/25, don’t take risks. Our team at The Tax Faculty can guide you through every step, review your calculations, and ensure your self assessment is accurate and compliant.

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