Helen Hughes Accountancy | Stark warning by HMRC if you've sold a second home
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Stark warning by HMRC if you've sold a second home

12 Mar Stark warning by HMRC if you've sold a second home

The latest focus of the HMRC’s campaign against tax avoidance and evasion is centered around the loss of capital gains tax on the sale of second homes.

People who have sold properties that are not their main homes, and who have not told HMRC about any profit made, are being targeted in a new HMRC campaign. People will have until 9 August to tell HMRC about any unpaid tax on property sales, and until 6 September to pay the tax owed.

The Property Sales Campaign is aimed at those selling homes in the UK or abroad, where CGT should be paid on any profits made. This includes, for example, properties people have sold that were given to them, and the sale of holiday homes.

After 6 September, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT. By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first.

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.’

Source: HMRC Website

Many people are simply not aware that the sale of a property which is not their principal private residence attracts capital gains tax.

The sale of many assets over a certain value such as land (full or part sale), property or works of art and antique furniture can attract a bill from the tax man.

If you have any queries relating to a sale that you have made or are considering making, please get in touch with Hughes Accountancy for some sound, no-obligation advice.