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Losses on asset sales can help to save on profit tax liabilities

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Taxpayers have a little more time when it comes to submitting their Capital Gains Tax (CGT) assessments for 2012. By calculating any gains made in the current year, there is still time to reduce your tax bill by availing of valuable CGT reliefs or even selling assets which, if their sale were to generate tax losses, could also reduce your CGT liability.

This article is specifically considering the upcoming CGT reporting deadline for 2011 capital gains and CGT payment deadline for 2012 capital gains.

CGT Payment dates

For disposals made in the first period, January 1, 2012, to November 30, 2012, the CGT liability will be payable on December 15 and for any disposal made in the second period, December 1, 2012, to December 31, 2012, the CGT will be payable on January 31, 2013. Penalties may apply to late payments.

Even if you’ve made an overall loss for 2012, if you make a gain in the first period and a loss in the second, you are still obliged to pay CGT in relation to the first period upfront. You can make a refund claim in January but from a cash flow perspective it might make more sense to plan the timing of your disposals, so gains and losses can be offset concurrently.

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