The HMRC property sales campaign has recently been launched to encourage taxpayers who have not already done so to tell them about the sale of, or disposal of, properties that are not their main homes either in the UK or abroad, and have failed to declare any profits on which Capital Gains Tax should be paid.
Taxpayers have until the 9th August 2013 to tell HMRC they may have unpaid tax and until the 6th September to calculate their liability and pay what they owe. After the 6th September, as quoted on their own website “HMRC will use the information it holds to target those who should have made a disclosure under this campaign and failed to do so.”
HMRC have said that by coming forward voluntarily taxpayers are likely to receive better terms than if HMRC comes to them first.
You are eligible for this campaign if :
- You’ve sold, or disposed of, second or additional residential properties either in the UK or abroad. These could include a holiday home or a property that you rented out.
- You have sold your main home. This would normally qualify for Private Residence Relief but in some circumstances the relief is restricted. Where the entitlement to this relief is restricted Capital Gains Tax may be due if you are liable to UK taxes.
- Even if you didn’t originally purchase the property you may still be liable to pay tax on the gain if you acquired the property another way. For example you may have inherited it or it may have been a gift.
This campaign is not for you if you:
- Buy and sell property as a business. These sales are subject to Income Tax rather than Capital Gains Tax.
- Need to disclose a gain made by a trust, company or partnership.
If you take part in this campaign and tell HMRC about any gain that you haven’t previously disclosed you can assess the correct level of penalty to reflect why you have not paid the right amount of tax in the past. Under certain circumstances you may be able to pay what you owe by installments.
If you think this may apply to you, and you would like help to regularise your tax affairs with HMRC, please Click Here