Property tax campaign targets second home sales

Sellers have until 9 August to declare unpaid Capital Gains Tax on property sales.

playing-card-houses-taxbrackets

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.

August deadline
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

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Tuesday, 5th March, 2013 2:55pm

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4 Comments

  1. Thomas's comment is rated +1 Vote +1 Vote -1

    5.Mar.2013 3:26pm

    This is a Conservative Government measure to divert the demand that it is the rich and particularly the bankers to pay for the crisis. Second homes are not necessarily owned by the super rich, many are owned by the middle who are being squeezed or better off working class who have a holiday home etc.These politicians in the Con/Dems want to be able to flag up how much they have recovered in tax by the next election.The Rich won’t be touched.

    Reply
    • stephen's comment not rated yet. Add your vote Vote +1 Vote -1

      5.Mar.2013 7:19pm

      Often a second home is being purchased as a retirement home by those who live in tied housing. Members of the clergy and school caretakers are two examples of those who could be homeless at retirement.

      Reply
      • Rowan's comment not rated yet. Add your vote Vote +1 Vote -1

        6.Mar.2013 9:08am

        I don’t think homes owned by clergy and others in the same position would count as second homes, precisely because they don’t own their tied homes.

        Reply
    • Rowan's comment is rated +1 Vote +1 Vote -1

      6.Mar.2013 9:14am

      You may be right, Thomas, and the revenue people ought to be concentrating even more on the richest multinational companies and individuals.

      But it’s right that second homes should be seen as a luxury while there are still homeless people who don’t even have a first home, and when house prices have gone up so much that many people will never be able to own their own home even if they work hard full-time all their lives.

      And it’s arguanble that it’s not even the casino bankers who are the main culprits in some way, but their clients who want short-term profits whatever the cost to other people or the environment.

      Reply

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