People who have sold properties which are not their main homes, and have not told HM Revenue and Customs (HMRC) about any profit, have one month left to make use of the disclosure opportunity.
HMRC’s Property Sales Campaign is aimed at those selling second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. It includes properties that were rented out and holiday homes.
Taxpayers have until 9 August to tell HMRC about any unpaid tax on such property sales, and until 6 September to pay the tax that they owe. By using the campaign to come forward voluntarily, people will receive the best possible terms, and any penalty will be lower than if HMRC approaches them first.
Marian Wilson, Head of HMRC Campaigns, said:
“Over the last few months we have published articles and written to a lot of people to make them aware of the campaign. As a result, hundreds of people have now come forward. It is not too late for people to contact us.
“If you have sold a second home you might not know it could attract Capital Gains Tax. If anyone has done this in the past and is unsure, they should look at HMRC’s website and use our simple decision tree to find out if they might owe CGT. Telling HMRC about your tax liabilities is straightforward, and help, advice and support are available.”
After 6 September, HMRC will take a much closer look at the tax affairs of people who have sold properties other than their main home, but who appear to have paid no CGT. We will use information that we hold about property sales in the UK – and abroad – to identify people who have not paid what they owe. Penalties – or even criminal prosecution – could follow.
People can take advantage of the campaign by:
· telling HMRC about unpaid tax by 9 August
· disclosing the details of what they owe
· paying the tax owed by 6 September.
For more details on the campaign, taxpayers can visit HMRC’s website. Help is also available from HMRC by calling 0845 601 8819.
Contact Davenports today if you require assistance on 0845 351 0381