You are here: Home - Mortgages - Buy To Let - News -

HMRC offers second property owners ultimatum

0
Written by:
30/07/2013
People who have sold second properties have one month to notify HMRC about any profit before facing a fine.

Taxpayers have until 9 August to tell the tax authorities about any unpaid tax on such property sales, and until 6 September to pay the tax that they owe.

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

HMRC said those who voluntarily come forward will receive the ‘best possible terms and any penalty will be lower than if HMRC approaches them first’.

Marian Wilson, head of HMRC campaigns, said: “Over the last few months we have published articles and written to a lot of people to make them aware of the campaign. As a result, hundreds of people have now come forward. It is not too late for people to contact us.

“If you have sold a second home you might not know it could attract Capital Gains Tax. If anyone has done this in the past and is unsure, they should look at HMRC’s website and use our simple decision tree to find out if they might owe CGT. Telling HMRC about your tax liabilities is straightforward, and help, advice and support are available.”

After 6 September, HMRC will take a much closer look at the tax affairs of people who have sold properties other than their main home, but who appear to have paid no CGT.

HMRC will use information that it holds about property sales in the UK – and abroad – to identify people who have not paid what they owe. It says that penalties – or even criminal prosecution – could follow.

People can take advantage of 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 on the campaign – visit HMRC’s website or by calling 0845 601 8819.

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