CCH Personal Tax 2025.1: Release Notes

ITS 68141 – P11D working  sheet should not have type E as an option

Following changes to the P11D we have removed E (Electric) category; such vehicles now form part of the category A (All other) type. CO₂ emissions and electric range have now been made available for the A category.

 Previous years remain unchanged and E type cars present in 2025 are revised to A and an error and exception warning is triggered.

Updated CO₂ emissions file

The latest file (September 2024) for car emissions as provided by VCA.gov.uk has been included in this release.

CO₂ emissions and car fuel benefit multiplier

The Employment car fuel benefit multiplier has been updated as follows:

• 2025 this was frozen at £27,800

• For 2026 the multiplier is increased to £28,200

The latest car fuel emissions data to September 2024 is included with this release.

Bare Trusts

Where a Bare Trust is required to be completed a new box, 8.4.2 , is to be checked. To help differentiate we have updated the Basis of taxation to include a new option:

Selecting Bare Trust – Return required ticks box 8.4.2 on the return to be completed.

Unauthorised Unit Trusts

HMRC has introduced box 8.4.1 dedicated for trustees of unauthorised unit trusts:

Removal of the Standard Rate band

Following the removal of the standard rate band from 2024/25, HMRC has removed box 9A.1 from the return.  The Basis of taxation screen no longer references the standard rate band from 2025; instead it refers to the number of other trusts for the purposes of the Trust income exemption.

Number of other trusts

As a result of the above changes HMRC has included new box 9B.1 on the return.  The Basis of taxation screen references the Number of other trust rate trusts. This is required to ascertain the amount of the Trust income exemption where relevant.

Cryptocurrency

A new asset type C – Cryptoassets has been added to the Asset type drop-down list:

This is very similar to Asset type O – Other assets, except attributed gain and earlier year gain are not present.

On the full CGT details screen, Business asset disposal relief and Investor relief have been disabled. The Excluded Indexed security and QAHC options are not present for Asset type C.

Reliefs can be claimed to reduce gains on Cryptoassets in the usual way.

Losses on Cryptoassets can be set against gains on other assets in the usual way. As a rule, they are set against gains on asset types that bear highest rates of CGT first.

Where there is a gain on a cryptoasset and a loss on another asset of same year that is available for offset, the loss can be offset as usual. The ‘C’ gains are grouped with other gains on which the same rate of tax is paid when determining the order of gains against which loss setoff is made.

Connected persons legislation applies to gains on Cryptoassets.

Reporting Cryptoasset gains and losses on SA108

Cryptoasset Gains and Losses and associated amounts are declared in boxes CGT13.1 to CGT13.8 of SA108.

Reporting Cryptoasset gains and losses on SA905

Gains and losses appear on page TC 2

The total gains and losses appear on Page TC3.

It is sometimes offset against a loss realised on other property; assets and gains that would usually be shown in Box 5.10 against residential property assets in Box 5.2. This enables the loss to be set against gains on assets that can be taxed at a higher rate than gains on other assets.

If this causes Box 5.10 to show a lower amount of losses on Cryptoassets than were incurred, the amount in Box 5.10A is limited to the amount in Box 5.10 and a note is added to additional information explaining this.

The number of transactions in Cryptoassets appears on Page TC4.

Carried Interest

From 2024/25, gains on carried interest are no longer reported in Box 6 along with gains on residential properties. they are however reported on SA108 in Box 13 (gains calculated on arising basis) and Box 13A (gains calculated on accruals basis). The sum of the amounts in Boxes 13 and 13A are reported in Box 13B.

If any of the amounts in Box 13B were the subject of a Real Time Transaction Return(s), the gains reported on Real Time Transaction Return are also reported in Box 11 and the amount of tax paid is shown in Box 12.

To report a carried interest gain, create a type R – UK residential property disposal  and select Full details. Enter the disposal date and click on the Carried interest hyperlink. Enter the details for Boxes 13 and 13A on that screen.

If a gain on carried interest has been the subject of a Real Time Transaction Return click on the hyperlink for UK Property Disposal or RTT Return on the Full Details screen for the gain and enter the relevant information.

Investors' relief

Following the budget on 30 October 2024 the limit for Investors' Relief was reduced from £10m to £1m for qualifying disposals made on or after 30 October 2024. 

In addition to the change to the relief limits, Forestalling arrangements have been introduced where a delay occurs upon completion of transactions. The Forestalling arrangements seek to counter transactions attempting to lock-in the pre-Budget day lifetime limit of £10 million. The arrangements make use of: 

• Unconditional contracts entered into before Budget day 
• The time of disposal rule S28(1) TCGA1992, and  
• Contractual completion of the disposal after Budget day. 

Forestalling Arrangements

Where a contract of sale was entered into prior to Budget day but the contractual completion is after Budget day, the forestalling arrangements apply; the ‘earlier’ disposal date still applies but the new (reduced) lifetime limits applies to the claim to Investors’ Relief.  

A new tickbox, Forestalling arrangements apply (IR) has been added to the Full details screen: 

The check box is active in the following circumstances:

1. The disposal date is on or before 30 October 2024; and
2. Investors’ relief is checked.

Investors' Relief data entry screen

The Investors’ Relief data entry screen has been updated for 2025 onwards:

Additional entry fields have been added for the revised post 29 October 2024 limits to show the interaction with the reduced lifetime limits. The values appearing in the post 29 October 2024 column are populated automatically after any pre-30 October 2024 transactions are applied:

SA108 Gains realised on Land and property assets (L)

Gains on L type assets that are reported in Box CGT 17 are also reported in Box CGT 17.1

SA108 Business Asset Disposal Relief - Boxes 17.2 to 17.4

Where a gain that qualifies for BADR, and is shown in Box CGT17, the gain is required to also appear in Boxes CGT17.2, or CGT17.3 or CGT17.4.

The SA108 advises that gains where Business Assets Disposal Relief (BADR) is claimed should be included in Other property, assets and gains (when the asset would otherwise be included in another section of the form). The purpose of these boxes is to recategorise the asset that was disposed of.

The Business Asset Disposal relief data entry screen accessed from full details

Select the category of asset disposed from the drop down box.

The population of the Tax Return Boxes equates with the gains associated with the selection made

• Land and property Box 17.2
• Shares and securities Box 17.3
• Other assets Box 17.4

When no selection is made, the system treats the disposal as having been of Land and Property (Box 17.2).

When the relevant gains total more than the remaining lifetime limit, then the amounts to go to Box 17.2 - 17.4 should be as per qualifying gains on Business Asset Disposal Relief screen. 

In this example £999,950 appears in Box 17.4 and nothing in 17.2 or 17.3.

Where BADR relief is claimed on a disposal of Q or U type asset and it becomes a qualifying gain in precedence to a gain on a L or O type asset, the amount of that gain is not shown in boxes 17.2 - 17.4 and the amounts in boxes 17.2 - 17.4 are less than the amount of BADR claimed.

When there is a qualifying gains override, the gains appear on the SA108 form in the same order as the Qualifying gains grid.

Where there is an earlier year disposal and date of disposal is per 10 March, the qualifying gain is calculated against pre March 2020 lifetime limit unless forestalling is checked.

An earlier year disposal of pre March 2020 is treated as priority over other gains.

Rate of tax

As already advised, we plan to include the calculation of Capital Gains Tax including the rates of tax that were announced in the October 2024 Budget in the 2025.2 release. This may impact the order of set off of losses.

We have added the following to the SA905 for 2025, to allow a manual adjustment: