Listen to Episode 534
In this week's episode, I highlight a critical glitch in HMRC's self-assessment tool affecting Capital Gains Tax reporting for the 2024/25 tax year. I provide the steps you should take to correct your return and share a tip on how you could reduce your tax bill by applying your annual allowance more effectively.
We also discuss the latest data revealing a fall in UK house prices across all major indices. We break down the reasons behind the drop and what it means for buyers and sellers in 2026. Finally, I share some practical tips on how to prepare your finances to secure the best mortgage deal.
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Episode 534 Podcast Summary
HMRC tax glitch warning
Summary:
We discuss a significant issue with the HMRC online tax return calculator for the 2024/25 tax year. Following the Autumn Budget in October 2024, Capital Gains Tax (CGT) rates increased mid-year. However, the HMRC system is defaulting to the lower rates, potentially causing people to underpay and risk fines. We explain how to spot the error and the manual workaround required to file correctly.
Key Insights:
- The Glitch - The HMRC calculator cannot handle the split-year tax rates introduced by the October 2024 budget, often defaulting to the lower pre-budget rates.
- The Fix - You must use a standalone HMRC calculator to work out the correct figure and manually enter the adjustment in Box 51 of your tax return, explaining the calculation in Box 54.
- Penalty Risk - Failure to correct this could result in a penalty of up to 30% of the tax due for careless reporting, plus interest on late payments.
- Tax Saving Opportunity - You may choose to apply your £3,000 annual allowance to gains made after 30th October 2024 (the higher rate period) to reduce your overall tax bill.
- Filing Requirements - You may need to file a return even if you haven't exceeded the allowance, specifically if you sold assets worth more than £50,000 or sold a UK residential property
House price falls and mortgage market update
Summary:
We review the latest housing market data, noting that for the first time since 2022, all four major indices (Rightmove, Halifax, Nationwide, and ONS) have reported a drop in house prices. We explore the factors driving this, including high borrowing costs and the abundance of housing stock. We also provide an update on the mortgage market, which is seeing the highest level of choice since 2007.
Key Insights:
- House Prices are Falling - Halifax and Nationwide reported monthly drops in December 2025, while Rightmove asking prices fell by 1.8%, indicating sellers are becoming more realistic. Despite the dip, forecasts for 2026 remain positive, with Nationwide predicting 2-4% growth, suggesting a market correction rather than a crash.
- Mortgage Choice - There are over 7,100 mortgage deals available, an 18-year high, with increased options for first-time buyers with smaller deposits.
- Remortgage Tips - With 1.8 million fixed deals ending, it is vital to check your credit score, audit your direct debits to improve affordability, and consider locking in a new rate up to six months early.
- Avoid New Credit - If applying for a mortgage, avoid taking out new finance or using bank switching offers that close old accounts, as these can negatively impact your credit file
Resources
Links referred to in the podcast:
-
- Capital Gains Tax Calculator - 2024/25 Tax Year
- MTTM - Podcast Episode 494 - Improve your odds of getting a mortgage
- MTTM - Podcast Episode 367 - Preparing for fixed-rate mortgage deal ending
- How to make your child a millionaire - Strategy Guide
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