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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Small capital distributions: procedure under Self Assessment

In relation to years covered by Self Assessment there is no requirement for the Inspector to be satisfied and make a direction. For these years Section 122(2) operates where, as a matter of fact, the capital distribution is small. For further background to the changes under Self Assessment see CG10300+.

If a capital distribution does not fall within the criteria mentioned at CG57836, but the taxpayer nevertheless believes that the amount should in the circumstances be regarded as small, the SA return requires that the taxpayer should

  • show the gain or loss on the list of disposals on page 2 of the Capital Gains pages, and
  • provide details as to why they think it should be treated as small, under the space for `further information’,


  • not include the amount in the total of gains and losses carried back to the totals on page 1 of the Capital Gains pages.

You should consider whether to challenge these cases as part of any enquiries into the SA return on the basis of the guidance at CG57836.