Capital Gains Tax warning for those selling second homes in UK and abroad
1st August 2013 | News
Property owners who have sold premises which are not their main homes, and have not yet informed HM Revenue and Customs (HMRC) about any profit, have just one month remaining to make use of an available disclosure opportunity.
HMRC’s Property Sales Campaign targets those selling second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. This also includes properties that were rented out and holiday homes.
Taxpayers have until August 9 to inform HMRC about any unpaid tax on such property sales, and until September 6 to pay the tax that they owe.
Those who use the disclosure campaign voluntarily will be given the best possible repayment 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 the September 6 deadline, HMRC will take a much closer look at the tax affairs of people who have sold properties other than their primary place of residence.
HMRC will use information it holds on property sales in the UK – and abroad – to identify people who have not paid what they owe. This could lead to significant financial penalties and even criminal prosecution.
Figures state HMRC campaigns have so far raised £547 million from voluntary disclosures, and nearly £140 million from follow-up activity, totalling around 20,000 completed investigations.