If you have recently sold a second home and not yet settled up with the Inland Revenue, then Steven Glicher accountants have one piece of advice for you – do it quickly.
The deadline is approaching, and anyone who owes tax on the sale of a second home has less than a week to pay their dues. If you fail to pay voluntarily, then HMRC will start to impose penalty charges.
The deadline applies to property owners who have sold buildings which are not classified as their main homes of residence. Owners who have yet to inform HM Revenue and Customs of any profit on these sales, have just one week left to pay the tax they owe. The deadline is set for 6 September, 2013. HMRC is running a national campaign to publicise this due date.
The latest ‘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. This also includes properties that have been subsequently rented out and properties that are used as occasional holiday homes.
Taxpayers have until the 6 September to pay any outstanding tax.
The latest campaign is designed to encourage people to come forward voluntarily in order to receive the best possible repayment terms. If HMRC is forced to approach tax payers then significant penalties may be incurred.
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 the 6 September deadline has lapsed, HMRC has confirmed it will take a much closer look at the tax affairs of those who have sold properties other than their main home of residence, but appear to have paid no CGT. To this end, the department will subsequently use information it already holds on property sales in the UK and abroad in order to identify those who have avoided paying what they owe. Penalties and even criminal prosecution could follow.
HMRC’s campaigns have so far raised £547 million from voluntary disclosures, and an additional £140 million from follow-up activity targeting those who have evaded paying CGT. Campaigns have previously targeted offshore investments, medical professionals, plumbers, VAT defaulters, online traders and many more professionals.
For more information on the Property Sales Campaign, taxpayers can seek guidance ahead of the deadline by visiting HMRC’s dedicated PSC section.
For more information on Capital Gains Tax liabilities, EIS, SEIS, EMI and expert advice on how you might be able to reduce the amount of any chargeable gain, contact Steven Glicher accountants on 0161 485 8007.