CCH Personal Tax 2024.2: Release Notes
Release Highlights
This release of Personal Tax includes the following items:
- Creation of a default repayment option for form R40
- Updated Specials and Exclusions
Details of these and other changes are included in these release notes.
Prerequisites
Installing CCH Personal Tax 2024.2
This release is installed using the Central Suite Installer. This ensures that all prerequisites are in place and that all the products for which you are licenced are installed in the correct sequence. Click here to learn about the Central Suite Installer.
Legislative and Compliance Updates
Specials and Exclusions
The following specials and exclusions have been updated or added for 2023/24
Exclusions
We have identified this and have taken the following action:
| Exclusion ID | Detail | WK Action |
| 138 |
Since 6 April 2013 the total amount of certain Income Tax reliefs that can be used to reduce the total taxable income has been limited to £50,000, or 25% of adjusted total income if higher. In 2023/24 a new box, AOR6.1, was added to the return and the calculator (within stage c4) to ensure that pre-incorporation losses covered by s86 ITA 2007 were not incorrectly restricted as they had been before the creation of the new boxes. Previously those types of losses were included in box AOR6 (and c4.37) which included other losses and those boxes fed into the calculation as losses that did need to be restricted (thus fixing the 2022/23 version of this Exclusion). However, per section 29(4) of The Education (Student Loans) (Repayment) Regulations 2009, those losses should be excluded when identifying the borrower’s total income upon which to calculate the amount of Student Loan repayments that they need to pay, and as such the new box AOR6.1 should also have been included with other Student Loan deductions at stage 27 of the calculator. Without its inclusion there a customer will overpay on their Student Loan repayments. |
Our calculation produces the correct position, which means that an online submission would fail with a CAL1/CAL2 error and a paper return will need to be submitted. We identify this exclusion, and a pre-validation error occurs at the Generate IR Mark stage. |
Specials - Individuals
| Special ID | Detail | WK Suggested Workaround |
| 52 |
This will affect non-UK resident beneficiaries of UK estate income, customers who receive UK and/or foreign dividend income from estates and are considering if it should be entered in Return box TRU18/TRU18.1. The income for a beneficiary of a UK-estate is deemed within Part 5 ITTOIA 2005 to have the character of either dividends, savings or ‘other’. For UK and non-resident beneficiaries any dividend income in TRU18/TRU18.1 should be fully taxed. That income from a UK estate is deemed UK-sourced income for the beneficiary. Dividend income from an estate is brought into charge by Part 5 ITTOIA 2005 and is outside the scope of income tax for non-residence (s368 ITTOIA) and not within the definition of disregarded savings and investment income at S825 ITA 2007. |
In these circumstances: · If a claim is made for Extra Statutory Concession A14 to apply to UK Dividends, the income is treated as retaining the character as if received directly rather than via an estate. This allows the customer to claim Double Taxation and other reliefs and the income should not be entered in TRU18/TRU18.1. It should be shown in the DT relief claim in HS304. (Non-residents – relief under double taxation agreements). This can be populated via Residence, Remittance Basis etc, Residence in other countries tab, Add Help Sheet 304 link. |
| 53 |
This will affect customers claiming the trading allowance in box FSE16.1, have a standard profit (FSE64) of less than the trading allowance claimed and a transitional profit which is reduced by the balance of the trading allowance claimed. These customers are not able to enter their full entitlement to the trading allowance in box FSE16.1. An example would be a customer who has a standard profit of £800, a transitional profit of £400, and the amount they are entitled to claim is the full £1,000. Validation rules will only allow an entry of up to £800 in FSE16.1. |
In these circumstances customers should: · Work out the entitlement to the trading allowance. This will be the lower of £1,000 and the total of box FSE64, FSE68 and FSE73.1. · In the Accounting period ending within the tax year, go to the Income tab and enter in FSE16.1 the total of net profit for that accounting period. · Within the assessable period, Adjustments tab, tick Lock Accounts and reduce the transitional profit in box FSE73.1 by the overall amount of trading allowance they are entitled to less the amount entered in FSE16.1 (if required, you can adjust a positive entry in box FSE68 in the same manner). · Provide details of the claim to trading allowance in the Additional Information box of the online return and advise that the workaround has been used. |
| 54 |
This will affect customers with a standard profit (FSE64) or a standard loss (FSE65), positive adjustments (FSE71 plus FSE72) and a transitional loss (FSE73.1) that exceeds the standard profit (FSE73) or increases the standard loss. The validation rules will result in the transitional loss being used to incorrectly reduce the positive adjustments to zero in FSE76. |
In these circumstances customers should: · Remove adjustment entries in Assessable period, Adjustments tab, boxes FSE71/FSE72. · Enter the sum of FSE71 and FSE72 in Assessable period, Total taxable profits tab, box FSE75. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used. |
| 55 | This will affect customers with positive adjustments (FSE71 plus FSE72) and a transitional loss (FSE73.1) that exceeds the standard profit (FSE64), or increases a standard loss (FSE65), who want to bring forward losses up to the amount of the positive adjustments. The validation rules will result in an inaccurate maximum restriction of brought forward losses that can be claimed in box FSE74. |
In these circumstances customers should: · Remove adjustment entries in Assessable period, Adjustments tab, boxes FSE71/FSE72. · Enter the sum of FSE71 and FSE72 minus loss brought forward in Assessable period, Total taxable profits tab, box FSE75. · In the Losses screen, enter a negative amount in Adjustment to losses b/fwd, to reflect the amount used against the positive adjustments, so that the Losses to carry fwd amount is correct. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used. |
| 56 |
This will affect customers with positive adjustments (FPS10 plus FPS11) and a transitional loss (FPS16.1) that exceeds the standard profit or increases a standard loss. The validation rules will result in an inaccurate maximum restriction of losses brought forward that can be claimed in box FPS17 |
In these circumstances customers should: · Remove adjustment entries in Partnerships, Trading income tab, boxes FPS10 / FPS11 · In the same tab, enter the sum of FPS10 and FPS11 less loss brought forward if greater than 0 in FPS19. · In the Losses screen, enter a negative amount in Adjustment to losses b/fwd, to reflect the amount used against the positive adjustments, so that the Losses to carry fwd amount is correct. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
| 57 |
This will affect customers with positive adjustments (FPS10 plus FPS11) and a transitional loss that exceeds the standard profit or increases a standard loss. The validation rules will result in the transitional loss being used to incorrectly reduce the positive adjustments in FPS18 |
In these circumstances customers should: · Enter £1.5m in Accounting period, Capital allowances tab, box FSE49/SSE23 (Annual Investment Allowance) · Enter the excess in the same tab, box FSE55/SSE25 (100% and other enhanced capital allowances) · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
| 58 |
Where a customer has an accounting period that exceeds 547 days and calculates their Annual Investment Allowance (AIA) from their plant or machinery investments made in the capital allowance chargeable periods covered by that accounting period, the AIA threshold (and allowable claim) may exceed £1,500,000. This affects self-employed customers where for 2023/34 the validation for boxes FSE49 and SSE23 is set at £1.5m. An entry above will result in a validation failure and the return would be blocked from successful online submission. A customer wishing to claim over £1.5m AIA can still do so and successfully file online by capping the entries at boxes FSE49 and SSE23 to £1.5m and then entering the remaining balance of the AIA amount at either box FSE55 or SSE25 as appropriate, for other capital allowances |
In these circumstances customers should: · Enter £1.5m in Accounting period, Capital allowances tab, box FSE49/SSE23 (Annual Investment Allowance) · Enter the excess in the same tab, box FSE55/SSE25 (100% and other enhanced capital allowances) · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
Specials - Partnerships
| Special ID | Detail | WK Suggested Workaround |
| 9 |
Where a partnership has an accounting period that exceeds 547 days and calculates their Annual Investment Allowance (AIA) from their plant or machinery investments made in the capital allowance chargeable periods covered by that accounting period, the AIA threshold (and allowable claim) may exceed £1,500,000. This affects the SA800 and SA801 where for 2023/24 the validation for boxes 3.13A and 1.35A is set at £1.5m. An entry above will result in a validation failure and the return would be blocked from successful online submission. A partnership wishing to claim over £1.5m can still do so and successfully file online by capping the entries at boxes 3.13A and 1.35A to £1.5m and then entering the remaining balance of AIA amount at either box 3.20 or 1.36 as appropriate for other capital allowances |
In these circumstances customers should: · Enter £1.5m in Accounting period, Capital allowances tab, box 3.13A/1.35A (Annual Investment Allowance) · Enter the excess in the same tab, in box 3.20/1.36 (100% and other enhanced capital allowances) · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
Specials - Trusts
| Special ID | Detail | WK Suggested Workaround |
| 7 | This will affect Trust customers that carry out a trade with positive adjustments and a transitional loss that exceeds the standard profit or increases a standard loss. The validation rules will result in an inaccurate maximum restriction of losses brought forward that can be claimed in 1.89. |
In these circumstances customers should: · Remove adjustment entries in Assessable period, Adjustments tab, box 1.81. · In Assessable period, Total taxable profits tab, box 1.91, enter the sum of 1.81 less loss brought forward if greater than zero. · In the Losses screen, enter a negative amount in Adjustment to losses b/fwd, to reflect the amount used against the positive adjustments, so that the Losses to carry fwd amount is correct. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
| 8 | This will affect Trust customers that carry out a trade with positive adjustments and a transitional loss that exceeds the standard profit or increases a standard loss. The validation rules will result in the transitional loss being used to incorrectly reduce the positive adjustments in 1.90 |
In these circumstances customers should: · Remove adjustment entries in Assessable period, Adjustments tab, box 1.81. · In Assessable period, Total taxable profits tab, box 1.91, enter the sum of 1.81. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
| 9 | This will affect Trust & Estate Partnership customers with positive adjustments and a transitional loss that exceeds the standard profit or increases a standard loss. The validation rules will result in an inaccurate maximum restriction of losses brought forward that can be claimed in 2.19 |
In these circumstances customers should: · Remove adjustment entries in Partnerships, Trading income tab, box 2.12. · In the same tab, box 2.21 (Enterprise allowance etc.) enter the sum of 2.12 less loss brought forward if greater than zero. · In the Losses screen, enter a negative amount in Adjustment to losses b/fwd, to reflect the amount used against the positive adjustments, so that the Losses to carry fwd amount is correct. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
| 10 | This will affect Trust & Estate Partnership customers with positive adjustments and a transitional loss that exceeds the standard profit or increases a standard loss. The validation rules will result in the transitional loss being used to incorrectly reduce the positive adjustments in 2.20 |
In these circumstances customers should: · Remove adjustment entries in Partnerships, Trading income tab, box 2.12. · In the same tab, box 2.21 (Enterprise allowance etc.), enter the sum of 2.12. · A note should be included in the Additional Information box of the online return to advise that the workaround has been used |
Quality Improvements
Default repayment settings for Form R40
We have now included a dedicated tab for R40 default repayment preferences File > Maintenance > Tax Settings > Personal Tax > Default Repayment Claim Details.
A field for the Agent Reference Number (ARN) is included; this is a requirement for R40 claims (box 11.3) where an agent elects to receive the refund on behalf of a customer. The ARN entered automatically populates the ARN field within the repayment claim schedule for your R40 clients and appears on the R40 form should you elect to receive the refund direct.
ITS 67905 - CGT relief type for Employee Ownership Trust
We have added Employee Ownership Trust and associated 3 letter code (EOT) for selection as a relief from the drop-down menu to claim the relief against capital gains.
ITS 68015 - Incorrect tax rate displayed for Settlor Interest dividends - R40
On the R40 Settlor Interested dividend income was taxed at dividend rate; the correct 8.75% tax credit now appears in box 4.10 of the R40.
Note: Although this issue has been resolved, we recommend that you review any distributions made in the 'Income not liable to RAT’ dialog within Trust clients to ensure the correct net dividend distributions are shown.
ITS 68081 - HMRC Silent Login Only Recording Logins to https://www.tax.service.gov.uk/home
As part of the work completed in 2024.120 we recorded successful logins. We direct the user to the URL: https://www.tax.service.gov.uk/agent-silent-sign-in. Once the user is logged in they are redirected to another URL. A successful login was defined as a login to the URL: https://www.tax.service.gov.uk/home. As a consequence of this we did not record logins to other URLs, which are used e.g., https://tax.service.gov.uk/agent/dashboard. The latter URL is used by HMRC was the customer has an Agent Services Account (ASA). This has been fixed in this release.
ITS 68083 - Beneficiaries' foreign income schedule
It has been reported by customers that when entering foreign dividends and allocating then to a beneficiary the backing schedule was showing the incorrect 10% Tax rate. This has now been rectified.
Notable Issues
ITS 67932 - Class 2 National Insurance advisory warning shown in error
Where profits liable to National Insurance are in the range £6,725 to £12,570 (small profits threshold to lower profits limit), an advisory message appears within the Errors and Exceptions panel – Profits have exceeded the Class 2 NIC small profit threshold. A Class 2 National Insurance figure must be entered which can be obtained from the Government Gateway.
A National Insurance credit is given where the profits fall between these values and an entry is not required on the tax return. We plan to address this in a future release.
Items included in the 2024.120 Service Pack
The items included in the 2024.120 Service Pack are listed below.
Legislative and Compliance Updates
Updated FTSE350 File
The 2023/24 FTSE350 file is included in this release.
Average Exchange Rates
The average exchange rates file is produced from the official HMRC average exchange rates. The file is now included in this release.
Note: Please be aware that from 2023/24, HMRC are producing exchange rates to 4 decimal places rather than 6 decimal places as in prior years.
Croatia has now migrated to the Euro. In addition, the currency code for the Sierra Leone, Leone changed from SLL to SLE. These changes are reflected in this update.
Double Tax Treaty Rates
The 2024 and 2025 Double Tax Treaty Rates are included in this release. The following countries have been updated:
- Kyrgyzstan (effective from 2023/24)
- San Marino (effective from 2024/25)
Changes to HMRC Agent Portal (AKA HMRC Silent Login)
In September 2023 HMRC advised of changes to its terms and conditions to the silent log in service and advised that these new terms and conditions are planned to come into force on 24 June 2024. We have made the necessary changes to CCH Personal Tax to continue to support the Silent Login functionality.
HMRC plan to contact agents on or after 24 June 2024 to get their formal agreement to the terms and conditions. HMRC requires Silent Login users to:
- Provide HMRC with contact details for an employee within the User’s organisation who is responsible for the use of Silent Login within the User’s organisation.
- Notify HMRC within 72 hours in the event of any data breach in relation to Silent Login, in particular when access credentials have been used in an unauthorised way or used outside of the intended scope of Silent Login
- Keep a log of user details which records when Silent Login is used, by whom, and on what device. HMRC requires this log to be kept for 12 months (to be agreed) following each use of Silent Login, and this log to be provided to HMRC on request
- Set and maintain permissions for staff access to ensure that only staff needing access to specific client data may access that data.
- Refresh credential passwords within 72 hours of a data breach (N.B 72 hours is the time requirement for notification of a data breach under ICO rules) or if someone who has access to the credential passwords leaves your organisation
Note:
If you do not agree to these terms and conditions, HMRC will remove access to Silent Login. Similarly if you fail to comply with these terms and conditions, access to Silent Login will be removed; HMRC has also advised that where credentials are unused for 18-months or more, they will remove access to Silent Login. If you have any queries concerning silent login these should be directed to HMRC using the email agent.login@hmrc.gov.uk
As a result of these changes in requirements, we have updated the table Audit Trail History. When a login attempt is successful the following details are appended to the data table:
To view the full details as required by HMRC a SQL script, SilentLogIn.sql, is available from support. Please ask your system administrator to run the script using SQL Management Studio and the login details are then available:
Note: It is not possible to show exact details in the above picture as we do not include any ‘live’ data as part of the release notes.
Specials and Exclusions
HMRC has only recently made available their updated specials and exclusions document for 2023/24. HMRC has advised the following items have been corrected in the 2023/24 computation; we have added an end date of 5 April 2023 ensuring they no longer appear from 2023/24 onwards:
| Exclusion Number | Detail |
| 138 |
A new box AOR6.1 was added to the return to ensure that pre-incorporation losses are not incorrectly restricted, as they had been prior to the introduction of the new box. An end date has been added to the old criteria for this exclusion. However, this exclusion is still present with new criteria where pre-incorporation losses are not being deducted when student loan repayments are calculated, meaning that taxpayers will overpay their student loan repayments. We will add a warning for this new criteria in a later release. |
| 141 | Calculation of disregarded income for amount B had been including high income child benefit charge incorrectly. |
Quality Improvements
ITS 68015 - Incorrect tax rate used for Trust / Estate dividends
For 2024 returns, Dividend income from Estates is incorrectly carrying a 10% tax credit rather than the correct 8.75%. This was affecting Estates, Trusts and Individuals.
ITS 68017 - SA800 Business Tax backing schedule not produced
Users had reported that when trying to produce a Business Tax backing schedule for partnership returns, they received a message ‘There is no data for this report’. The backing schedule is now present.
ITS 68032 - Trust link not working for multiple trusts
Some users have reported that following the upgrade to 2024.100, where a beneficiary is in receipt of income from more than one linked trust/estate, only the income from one trust populates the return and the remainder are removed from the data screen.
Note: Although this issue has been resolved we recommend that you review any distributions made in the 'Income not liable to RAT’ dialog within Trust clients to ensure the correct distributions are shown. Please see this KB article for recommended actions.