Property Sales Campaign by the Inland Revenue
HMRC regularly give the tax payer the opportunity to declare tax that would otherwise have gone undeclared.
The latest campaign that they are advertising relates to sales of property either at home or abroad which is not your main residence and any Capital Gains Tax that may be due on the sale of that property. To take advantage of this campaign and get the best possible terms available regarding any unpaid tax, you must notify HMRC by the 9th August 2013 and the matter must be settled (and any outstanding tax paid) by the 6th September 2013.
The property may be a holiday home or rental property or it may be your primary residence in those instances where you don’t qualify for Primary Residence Relief such as:
1. you may own a property with grounds or gardens of more than 5,000 square metres or:
2. you use any part of your home for business purposes;
3. you purchased the property to make a profit from a quick sale
4. you let out all or part of your home.
You don’t necessarily need to have purchased the home – for instance it may have been a gift or inheritance – you may still be liable to pay tax on any gain.
You will not be eligible for this campaign if you buy and sell property as a business – in this case you are liable for Income Tax rather than Capital Gains Tax.
If you don’t take advantage of this campaign and the Inland Revenue come to you for tax that they think is due it is likely to cost you more money as penalties and interest may apply.