Do you have an undisclosed liability to capital gains tax? If so you need to act now.
HMRC have launched a property sales campaign which targets individuals who have an undisclosed liability to capital gains tax (CGT) arising from the sale of property either in the UK or abroad.
From September HMRC will begin checking all residential property sales to identify undeclared gains. It is understood that HMRC will use the national insurance numbers declared on Stamp Duty Land Tax (SDLT) forms and cross check them with the income tax records of the individuals concerned. HMRC has access to details of all UK residential property transactions and also collects information on UK and overseas property from a variety of sources including letting agencies and the internet.
The campaign will focus on second homes, investment property and main residences where they have been used for a purpose other than residential accommodation, for example if a tax deduction has been claimed for working at home, or the property has been let out prior to the owner moving in.
Anyone affected has until 9 August 2013 to notify HMRC that they wish to disclose a liability and until 6 September to file an application. Individuals disclosing liabilities under this scheme will face lower penalties that would otherwise apply.
We therefore urge anyone with undisclosed liabilities to contact Rebecca Potton at email@example.com as soon as possible so we can assist you. Equally if you are preparing to sell property please contact Rebecca for tax planning advice.