A new campaign has been announced by the tax office, this time aimed at those who have sold property in the UK or abroad, where CGT should have been paid on any profits made. Properties involved include properties that were given to, or inherited by, the sellers, as well as holiday homes.
People will have until 9 August to tell HMRC about any unpaid tax on property sales, and until 6 September to pay the tax owed. After that date, the tax office will take a closer look at the tax affairs of those who have sold properties other than their main home, but who appear not to have paid any Capital Gains Tax.
HMRC has recently interrogated data on over 10m property transactions to identify which ones may not have been accurately returned by taxpayers. Those who come forward voluntarily will pay a lower penalty than if HM Revenue and Customs approaches them first. Otherwise, people could face hefty fines and/or prison.
Marian Wilson, head of H M Revenue and Customs 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. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available.”