HMRC Announce a Property Sales Campaign

HMRC have recently announced another new campaign, this time for individuals who have disposed of a residential property (which was not their main residence) at home or abroad, and have not informed HMRC about the disposal. The following situations will be affected:

  • those who have sold their main residence but who where some periods of ownership did not qualify for principal private residence relief
  • buy to let landlords
  • those who have sold second homes, and
  • individuals who have disposed of property by way of a (usually family) gift.

It is not uncommon these days for properties to be sold at a loss, which nevertheless should have been disclosed, and taxpayers can take this opportunity to put their affairs in order. Other tax issues (for example rental income which has not been declared) can and should be disclosed at the same time.

After the campaign closes on 6 September 2013, HMRC will use information it holds about property sales, in the UK and abroad, to identify people who have not paid the capital gains tax liability associated with the disposal. Individuals will then face higher penalties and even criminal prosecution could follow

If you think that this may affect you, contact us for a confidential discussion. We have extensive experience of helping taxpayers with disclosures to HMRC,