People who have sold second homes or buy-to-let properties are being targeted by HMRC in a new campaign.
The Property Sales Campaign is aimed at those selling homes in the UK or abroad where Capital Gains Tax should be paid on any profits made.
Types of Properties Subject to Capital Gains Tax
This includes, for example, properties people have sold that were given to them, and the sale of holiday homes.
People will have until August 9 to tell HMRC about any unpaid tax on property sales, and until September 6 to pay the tax owed.
Deadline and Compliance Requirements
After September 6, 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 September 6, 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.”
Article courtesy of Landlord Today“”
