Property tax campaign targets second home sales
The latest tax amnesty sees second homes, that are not people's main residences, as the focus of HMRC's attention.
The Property Sales Campaign will encourage those who have sold homes in the UK or abroad and have not disclosed the profit to HMRC, to come clean before 9th August. They will then have until 6th September to pay the capital gains tax.
Those that do volunteer during the campaign will receive the best possible terms and will pay a lower penalty than if HMRC contacts them first.
The type of properties that HMRC have in mind include those that were gifted to people then subsequently sold and disposal of holiday homes.
People do not need to be concerned about the sale of their main private residence as this is usually exempt from capital gains tax. There are tax implications however where the property has not been an individual's main residence throughout or they have used it for business purposes, letting or sold part of the garden.
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. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available.

“It is better to come to us before we come to you. After the opportunity closes on 6 September, HMRC will use information 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.”
HMRC holds the database for all property disposals that attract Stamp Duty Land Tax. Once the campaign period closes, HMRC will check this property disposal data against people's tax records to ascertain whether or not individuals have told the Revenue about their sale of second and holiday homes.
The 2011 census revealed 1.57 million people living in England and Wales have a second address in the UK. Additionally, 820,000 people have a second address outside the UK, according to HMRC.
Campaigns against tax evasion have so far raised £547 million from voluntary disclosures and nearly £140 million from follow up activity, including 20,000 completed investigations.
More details about the campaign can be found by visiting the Property Sales Campaign (LINK) page. Help is also available from HMRC by calling 0845 601 8819.
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