HMRC launches Property Sales campaign this month
5th March 2013 | NewsAn HMRC property sales campaign targeting home owners who have profited from owning or selling second homes or even multiple properties is expected to begin this month.
The campaign will give those who have previously profited from second home sales an opportunity to own up, as they may be liable to Capital Gains Tax.
Capital Gains tax is a tax on the gain or profit made by selling, giving away or disposing of something. It applies to assets owned such as shares or property. People are entitled to a tax-free allowance and additional reliefs that may reduce Capital Gains tax bills.
Under the terms of the campaign those who have previously failed to comply will have an opportunity to come clean under voluntary disclosure protocols created after dedicated HMRC taskforces assessed property transactions in London and rentals in a variety of locations last summer.
As yet it is unclear which type of property owners will be targeted first, but it is likely to be multiple properties owners who have moved from one principal private residence (PPR) property to another on multiple occasions.
People will have until August 9 to inform HMRC of any unpaid Capital Gains tax on property sales and any owed tax must be paid in full by September 6.
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. It is better to come to us before we come to you."