HMRC issue warning on sale of second homes

HMRC have issued a reminder to taxpayers who have sold properties that are not their main homes and have voluntarily told HMRC by 9 August about any profit on the sale, that they have until 6 September to settle this liability say Harris & Co chartered accountants Northampton who provide tax advice as part of their accountancy services to small and medium sized businesses.

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.

After 6 September, HMRC will use information they hold about property sales in the UK and abroad to identify people who have not paid what they owe. HMRC say that they will do this by comparing data they hold for all property sales/gifts attracting Stamp Duty Land Tax with taxpayer’s records to establish whether they have told HMRC about the sale or disposal of second and holiday homes. Penalties or even criminal prosecution could follow.

More details are available from HMRC.