Richardson Jones investigates client's CGT gains

Richardson Jones, chartered accountants and tax specialists in Marlow, recently advised a client who was having difficulty in reconciling his personal capital gains tax.

The issue involved the purchase and sale of units in unit trusts and involved transactions going back over three years. The clients calculations differed from those reported by the fund manager and despite considerable correspondence, he had been unable to establish why this was so.

We reconciled all transactions that had taken place over the three years, and were able to establish that the difference was to do with ambiguous reporting by the fund manager on the purchase and sale of accumulation units.

While this may seem a relatively minor issue, getting capital gains figures wrong can result in an over- or under-payment of tax due, resulting in unnecessary and time-consuming dealings with HMRC, and potential fines and interest on incorrect reporting and underpayments.