HMRC targets second home sellers
The taxman has launched a new campaign aimed at raising cash from those who have not paid Capital Gains Tax on the sale of their second home.
HM Revenue & Customs (HMRC) has launched the Property Sales Campaign, targeting people who have sold properties that are not their main homes, but haven’t told the taxman about any profits they may have made.
This includes those selling homes abroad, holiday homes and the sale of properties that were given to them.
If this applies to you, you have until 9th August to tell the taxman about any unpaid tax and until 6th September to settle the bill.
Once the September deadline has passed HMRC has said it will begin to “take a much closer look” at the tax affairs of people that have sold properties without paying Capital Gains Tax (CGT). Should it discover that you have failed to come forward to pay your outstanding tax, you will be hit with a far harsher penalty, potentially criminal prosecution.
HMRC claims that these campaigns have raised £547 million in voluntary disclosures alone so far, with a further £140 million pocketed as a result of follow-up activity.
What do you think of this latest campaign? Is HMRC simply focusing on easy targets or is it right to put the sale of second homes under the microscope? Let us know your thoughts in the Comment box below.