Amending CGT and Tax Return for a minor mistake

Landlord Discussion Property Investment
1

Hi,
One of my friends sold his property in the last tax (May, 2021) year and made a LOSS.
He submitted his CGT only in January, 2023 together with his 2021-2022 tax return.

He sold the property on a loss and the sold price was £100,000.

While he was preparing his CGT, he copied all the numbers from his solicitor’s invoice.
As per the solicitor’s invoice money received was £99,970 (Purchase price less £30 TT charge).
He ACCIDENTLY entered £99,970 as sold price instead of the actual sold price of £100,000.

He noticed this mistake only this year while he was preparing his tax return and he checked on some sold price website and it shows £100,000.

Now, he is thinking whether he has to amend the CGT and tax return of 2021-2022 (for carry forward loss). His carry forward loss is calculated after deducting the period he lived in the property.

Due to two reasons he does not want to amend his CGT and tax return if it is not mandatory.

  1. if he has to amend it then he has to pay around £300 to his advisor and another reason is
  2. he does not want to open his CGT, and Tax Return of 2021-2022 and make a mess

Is it possible to give your thoughts? Is it mandatory to amend it now or is it an acceptable error?
If he does not do it how much fine will he need to pay for entering accidently £30 less than the actual sale price?

Another mistake he made was he accidently added this £30 (TT charge) again in his sale expense.

Is it an acceptable situation or does he need to amend last year’s CGT and tax return and make a mess again?

Thanks,

3

I orobably wouldnt bother, but he should get the advice of an accountant.

1 Like
4

Thank you @David122 , my friend decided to forget this minor error.