Tax payers have until 9 August 2013 to notify HMRC should they believe the Property Sales Campaign applies to them and until 6 September 2013 to make a disclosure to HMRC and settle any outstanding tax liability. After this date HMRC will utilise their intelligence in order to analyse the tax affairs of taxpayers believed to have under declared their capital gains tax liability in respect of property sales.
This latest campaign from HMRC is aimed at individuals who have sold a residential property or properties in the UK or abroad where capital gains tax should have been paid but who have not disclosed the sale to HMRC previously. Most commonly relating to the sale of rental properties or holiday homes this campaign does not apply to sales of your main home as such disposals are normally covered by principal private residence relief. It would also not apply to individuals who buy and sell property as a business as this business would be subject to income tax rather than capital gains tax.
Although HMRC make it clear that any disclosures made to them throughout this campaign will not result in the taxpayer avoiding being penalised, they will typically be treated in a more favourable light.
Director Clare Vaughan said: “This campaign provides an opportunity to people who may not have previously realised they should have paid capital gains tax to disclose the sale, and anyone who believes that this may apply to them can call Kelsall Steele as soon as possible to discuss their situation.”