Property owners who have sold buildings that are not their main homes of residence, and are yet to inform HM Revenue and Customs (HMRC) of any profit on the sale, have just one week left to pay the tax they owe.
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. This includes properties that have been subsequently rented out and occasional holiday homes.
Taxpayers have just one week to pay the outstanding tax owed by 6 September. The campaign is designed to encourage people to come forward voluntarily in order to receive the best possible repayment terms and significantly reduced penalties than if HMRC approaches them first.
Marian Wilson, head of HMRC Campaigns, said: "Hundreds of people have come forward to take advantage of this campaign. It is not too late to contact us.
"If you have sold a second home you might not know it could attract Capital Gains Tax. You should look at HMRC’s website to find out if you owe CGT. Telling HMRC about your tax liabilities is straightforward and help, advice and support are available."
Once the 6 September deadline has lapsed, HMRC has confirmed it will take a much closer look at the tax affairs of those who have sold properties other than their main home of residence, but appear to have paid no CGT.
The department will subsequently use information it already holds on property sales in the UK – and abroad – in order to identify those who have avoided paying what they owe. Penalties and even criminal prosecution could follow.
HMRC’s campaigns have so far raised £547 million from voluntary disclosures, and an additional £140 million from follow-up activity involving CGT evaders. Campaigns have previously targeted offshore investments, medical professionals, plumbers, VAT defaulters, online traders and many more professionals.
For more information on the Property Sales Campaign, taxpayers can seek guidance ahead of the deadline by visiting HMRC’s dedicated PSC section.
Call us today on 0800 0523 555 or complete our enquiry form and we will identify your nearest TaxAssist Accountant in order to book a FREE initial consultation