Deadline for Property sales disclosure | Bradleys Accountants

/ Posted By - Bradleys Accountants / Categories - Advice for Small Businesses

People who have sold properties that are not their main homes, and have not told HM Revenue and Customs (HMRC) about any profit on the sale, have one week left to pay up.

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. HMRC Campaigns have so far raised £547 million from voluntary disclosures, and nearly £140 million from follow-up activity, including 20,000 completed investigations. Campaigns have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, electricians, online traders and higher rate taxpayers with outstanding tax returns. Seven people have been convicted, with custodial sentences handed out of up to two years. They have between them had to pay over £550,000.

If you owe any tax you have until 6 September to pay. HMRC holds the database for all property sales/gifts attracting Stamp Duty Land Tax. The department will compare this data with people’s tax records to establish whether they have told HMRC about the sale or disposal of second and holiday homes. By using the campaign to come forward voluntarily, you will receive the best possible terms, and any penalty will be lower than if HMRC approaches you 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."

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

You have less than a week to make this disclosure and it may be possible to pay the tax due in installments but this will need to be negotiated without delay. If you would like more information please call Alan McCappin on 020 8303 1287 or email us on contact@bradleysaccountants.co.uk

For more details on the campaign, taxpayers can visit HMRC’s website: hmrc.gov.uk/campaigns/psc.htm. Help is also available from HMRC by calling 0845 601 8819.

Source: HMRC

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