HMRC launched a campaign on 5 March targeting those who have sold second homes and not paid Capital Gains Tax (CGT) which was due.
“The Property Sales campaign is an opportunity for you to bring your tax up to date if you have sold a residential property, in the UK or abroad, that’s not your main home. If you made a profit but have not told HM Revenue & Customs (HMRC), you might not have paid the right amount of tax. To take advantage of the best possible terms you must voluntarily disclose your income or gains and pay what you owe by 6 September 2013.”
http://www.hmrc.gov.uk/campaigns/news.htm
HMRC warn that if they make contact first the penalties will be higher.
“After 6 September, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT. By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first.”
CGT may be due on the sale of second homes, holiday homes and buy to let properties.
Abacus Solicitors specialise in the sale and purchase of investment residential property and can help advise you on your potential Capital Gains Tax liability.
If you wish to discuss the sale and purchase of investment residential property please contact Sean Daly on 0161 833 0044 or by email at sean.daly@abacus-law.co.uk