This in from HMRC in their own words. Ed
People who have sold properties that are not their main homes, and who have not told HM Revenue and Customs (HMRC) about any profit made, are being targeted in a new campaign.
The Property Sales Campaign is aimed at those selling homes in the UK or abroad, where Capital Gains Tax (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.
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.
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.
Telling HMRC about your tax liabilities is simple
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.”
How to take part
People can take part in 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 plus help and support about the campaign, customers can visit HMRC’s website: http://www.hmrc.gov.uk/campaigns/psc.htm .
Help is also available from HMRC by calling 0845 601 8819.
Image: © Tax Brackets