You are here: Home - Household Bills - News -

New technology will catch tax evaders, warns HMRC

0
Written by:
05/09/2013
Property owners who fail to report profits from the sale of a second home are more likely to face punishment than ever before, HM Revenue and Customs has warned.

The tax collector has ramped up its tax evasion technology and is using it to target high-risk groups, after investigating offshore property owners earlier this year.

HMRC’s Property Sales Campaign is aimed at those who have sold second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. It includes properties that have been rented out and holiday homes.

An HMRC spokesman said: “Previously the problem was the information we had was not connected up, but now we have an IT system that connects all the data.

HMRC’s Connect tool can cross reference one billion HMRC and third party data items and will uncover previously hidden relationships between people, organisations and data.

Over the coming months, HMRC plans to invest £30m more in Connect, train additional risk analysts and build links with third parties.

In particular, it plans to launch 20 taskforces every year between now and 2015, using data to investigate offshore properties, affluent tax evaders and other high risk sectors.

HMRC warned: “If you dispose of a property in Belgravia for a couple of million pounds, we will check that against your tax return. If you are only earning £50,000, we will be asking questions.”

In taxman jargon, sellers who fail to declare the profit are “moonlighters” – unlike the more elusive “ghosts”, they leave a paper trail.

The deadline for notifying HMRC about a second home sale was 9 August. Those who still owe tax must pay up by 6 September or face hefty penalties, the spokesman said. Anyone who had not come forward yet should do so before the second deadline, he urged.

 For more details on the campaign, taxpayers can visit HMRC’s website.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week