People who have sold properties that are not their main homes, and who have not told HMRC about any profit made, are being targeted in a new HMRC campaign, reports Harris & Co small business accountants. People will have until 9 August to tell HMRC about any unpaid tax on property sales, and until 6 September to pay the tax owed.
The Property Sales Campaign is aimed at those selling homes in the UK or abroad, where CGT should be paid on any profits made. This includes, for example, properties people have sold that were given to them, and the sale of holiday homes.
After 6 September, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT. By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first.
Marian Wilson, Head of HMRC Campaigns, said:
‘Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract Capital Gains Tax. They need to look at our website or contact us. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available.’
‘It is better to come to us before we come to you. After the opportunity closes on 6 September, HMRC will use information it holds 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.’
Further details are available from HMRC.